HR Fast Facts: What’s the Difference Between Calendar Year and Plan Year?

When it comes to deductibles, it’s calendar year vs. plan year. Learn more about both here.

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person with calendar notebook 2021 planning

The deductible limit is the maximum amount in a given year that a plan participant may have to pay in deductibles before the plan coverage is required to satisfy the full amount of claims.

  • A calendar year deductible, which is what most health plans operate on, begins on January 1 and ends on December 31. Calendar-year deductibles reset every January 1.
  • A plan year deductible resets on the renewal date of your company’s plan. For example, if an employee’s health plan renews on May 1, then their deductible would run from May 1 to April 30 of the following year, and reset on May 1.

Carrier may specify this in contracts. Employees can try searching for annual deductible, deductible, or calendar year. If they are having trouble locating this information, they can contact their HR department, broker, or carrier.

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