How does a cancellation differ from a disenrollment?

A cancellation specifically refers to the termination of a Medicare Advantage plan before it officially takes effect. This means that when a cancellation is processed, the individual has not yet begun to receive benefits or coverage under that plan. It allows the enrollee to back out of the plan before any services or benefits have been put into place, thereby not incurring any costs or commitments associated with that particular plan.

In contrast, disenrollment occurs after the effective date of coverage; it signifies that an individual has decided to leave the plan after they have commenced receiving benefits. Consequently, understanding the timing surrounding cancellations and disenrollment is crucial for enrollees to manage their plans effectively.

The other options do not accurately represent the nature of cancellations. For instance, cancellations do not require a written initiation, nor do they require a doctor's request, which are stipulations that are more typically related to the disenrollment process or specific conditions under certain plans. Therefore, identifying the distinction based on timing clarifies the difference between a cancellation and a disenrollment.