How does a cancellation differ from a disenrollment?

A cancellation specifically refers to a situation where an individual requests to terminate their enrollment before their effective date. This means that if a person decides they no longer want to enroll in a plan before the plan's benefits have officially started, that request can lead to a cancellation of their application or enrollment.

This is fundamentally different from disenrollment, which occurs after the effective date of a member's enrollment. Disenrollment typically involves a process that allows a member to exit a plan under specific circumstances, such as moving out of the service area or due to other eligibility changes.

In contrast to the selected option, the other statements do not accurately convey the nuances of how cancellations operate in the context of enrollment effective dates, processing methods, and their timing relative to member status. Therefore, understanding this distinction helps clarify the process and implications for members regarding their health plan choices.