Final answer:
Enrolling in a new Medicare Advantage (MA) plan automatically ends enrollment in any other MA or prescription drug plan as of the new plan's effective date, based on principles of behavioral economics which eliminate the need for members to actively enroll or disenroll.
Step-by-step explanation:
When a member is enrolled in a Medicare Advantage (MA) plan, they are automatically disenrolled from any other MA plan or prescription drug plan (PDP) in which they were previously enrolled. This automatic disenrollment occurs as of the effective date of their new plan's enrollment. The process of switching from one plan to another does not require action from the member to cancel their old plan; it is handled automatically to ensure that there is no overlap in coverage or dual enrollment which could lead to conflicting benefit claims or insurance billing issues. This system is designed based on behavioral economics to simplify the process for beneficiaries, as it eliminates the need for individuals to actively enroll or cancel their previous plans.