Anniversary Year

An anniversary year is a 12-month benefit period that begins on the date your insurance coverage takes effect rather than on a standard calendar year. This means your plan’s annual maximums, deductibles, and claim resets follow your personal enrollment date instead of January 1 to December 31.

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For example, if your coverage starts on April 1, your anniversary year runs from April 1 of one year to March 31 of the next. This system ensures that benefits renew exactly one year after your policy begins, regardless of when you joined.

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Anniversary years are common in individual and family health or dental plans because they provide flexibility for policyholders who start coverage at different times of the year. They are less common in large group benefit plans, which typically align with the employer’s fiscal or calendar year for administrative simplicity.

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Example:

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If your policy starts on July 01, your first benefit year runs from July 01 to the following June 30. Any annual maximums, deductibles, or frequency-based benefits reset on that date each year.

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What to Watch For:

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Keep track of your anniversary date so you know when benefits renew. Submitting large claims just before the anniversary reset may exhaust your current year’s maximums, leaving little available until the next benefit period begins.