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In the event a rejection for multiple transaction is reported to the plan, the MAO or Part D sponsor may contact the individual. If the individual wishes to enroll in a plan offered by the organization that received the multiple transaction reject, they must submit a new enrollment request during a valid enrollment period.

70.2 – Cancellations

A cancellation is an action taken by an individual to stop an enrollment or disenrollment request prior to the effective date. An individual may cancel their enrollment or disenrollment request by contacting the plan. Since a cancellation is not an election, an individual does not need an election period to request a cancellation. For enrollments into employer or union sponsored plans, cancellations received by the employer or union prior to the enrollment effective date are also acceptable.

Example: Ms. Stears is an enrollee of Plan A. On November 12 (during the AEP), Ms. Stears contacts Plan B to request enrollment for a January 1 effective date. Plan B processes her request and receives confirmation from CMS that the enrollment will be effective for January 1. On December 21, Ms. Stears contacts Plan B again to say she has changed her mind and wants to stay with Plan A. Plan B must process an enrollment cancellation transaction.

A plan may accept a cancellation by phone, in writing, or in person. If a plan receives a verbal cancellation, it should document the verbal request. Plans have the right to request that a cancellation be in writing; however, the plan may not delay processing a cancellation once they have received the verbal cancellation. For facilitated enrollment as described in § 40.1.8 of this chapter, an individual may cancel (i.e., opt out of) the enrollment and affirmatively decline Part D benefits by telephone. The Part D sponsor may not require these cancellations in writing.

In some cases, CMS may be unable to automatically reinstate a prior enrollment after a successful cancellation. It may be necessary to take actions to restore the individual’s prior coverage. Refer to §§ 70.3 and 70.4.

70.2.1 – Cancellation of Enrollment or Disenrollment

Cancellations received by the plan before submission of the enrollment or disenrollment transaction to CMS are processed internally by the plan. The enrollment or disenrollment transaction is not submitted to CMS. A cancellation transaction is not necessary.

Example: Mr. Jones enrolls in Plan A with an effective date of January 1. On July 16, Mr. Jones is eligible for an election period and submits an enrollment request to enroll in Plan B for an effective date of August 1. On July 20, he changes his mind and decides he no longer wants to be enrolled in Plan B. Mr. Jones calls Plan B and requests that they cancel his enrollment request. Since Plan B has not yet submitted the enrollment transaction to CMS, Plan B does not need to submit a cancellation transaction to CMS. Plan B sends a cancellation notice to the individual.