Involuntary Termination Requirements

The employer or union agrees to the following:

1. The employer or union will provide CBIA a timely notice of contract termination or the ineligibility of an individual to participate in the employer or union group sponsored Medicare Advantage plan. Such notice must be prospective, not retroactive.
2. The employer or union must provide a prospective notice to its members alerting them of the termination event and of other insurance options that may be available to them through their employer or union.

To disenroll individual(s) from the employer/union sponsored Medicare Advantage plan and convert them to Original Medicare, the employer or union must provide the following.

• Medicare Advantage Notice: The Medicare Advantage organization (or the employer or union, acting on its behalf) must provide prospective notice to the beneficiary that his/her plan enrollment is ending at least 21 calendar days prior to the effective date of the disenrollment. The notice must include information about other individual plan options the beneficiary may choose and how to request enrollment.
• If the employer/union sponsored plan was a Medicare Advantage with Prescription Drug plan, the individual must be advised that the disenrollment action means the individual will not have Medicare drug coverage. Notice must include information about the potential for late-enrollment penalties that may apply in the future.