A cancellation differs from a disenrollment primarily in timing relative to the effective date of enrollment. A cancellation occurs when an individual stops or withdraws their enrollment before the plan's effective date, meaning they are not yet actively enrolled or receiving services. In contrast, a disenrollment happens after the plan's effective date when an enrolled individual takes action to leave the plan; their coverage continues until the end of the current month before being terminated.
Cancellation
- Happens before the effective date of enrollment.
- The individual is not yet receiving or eligible to receive services.
- Can apply to both opt-in and passive enrollments (sometimes called opt-outs for passive enrollment).
- The person remains in their previous coverage without any gap if not enrollments become effective.
Disenrollment
- Happens after the effective date of enrollment.
- The person is actively enrolled and receiving services.
- Coverage continues until the last day of the month following the disenrollment request.
- Can be voluntary or involuntary.
- Often requires formal requests and may be limited to specific enrollment periods depending on the plan type.
In summary, cancellation stops enrollment before it starts, while disenrollment ends active coverage after it has begun, with a continued period of coverage until the month-end after the request. This distinction affects coverage status, eligibility for services, and timing of changes.
