Calendar Year
The calendar year defines a benefit period that runs from January 1 to December 31. Many annual maximums, deductibles, and claim resets follow this schedule. It provides a consistent framework across most insurers and simplifies tax reporting for medical expenses.
How It Works
A calendar year is the 12-consecutive-month period that begins on January 1 and ends on December 31. On a health or dental plan, many annual maximums, deductibles, and claim resets follow this calendar-year schedule, which gives most insurers a consistent benefit framework and simplifies tax reporting for medical expenses. Sun Life's Health Coverage Choice plans, for example, apply their coverage maximums per insured person and per calendar year, defined as January 1 to December 31. Some plans instead use an anniversary year, a 12-month benefit period that begins on the date your coverage takes effect rather than on the standard January 1 to December 31 calendar year.
Example:
If your Canadian dental plan covers two cleanings per calendar year, you can book one in March and another in October, but you cannot claim a third until the following January, when the benefit resets on January 1.
What to Watch For:
Most plans reset on January 1 without rollover, so confirm whether unused benefits carry forward. The same applies to spending accounts such as health care spending accounts, which usually reset with the calendar year; on December 31 any unused balance is either forfeited or carried forward to the following year depending on the plan. Plans often allow a grace period after December 31 to submit claims incurred in the previous calendar year, but not all plans offer one, so confirm the length with your plan administrator.
