Arizona Health Insurance Practice Exam

What typically triggers a special enrollment period in health insurance?

1. A change in employment status

2. A loss of minimum essential coverage

3. Changing addresses

4. Turning 26 years old

The correct answer is: A loss of minimum essential coverage

A special enrollment period (SEP) is typically triggered when individuals experience certain qualifying life events that affect their health insurance coverage. One significant event that does this is a loss of minimum essential coverage. This can occur for various reasons, such as losing a job, aging off a parent's plan, or being in a plan that is no longer offered. When someone loses their minimum essential coverage, they are granted the opportunity to enroll in a new health insurance plan outside of the usual open enrollment period. This is important because it allows individuals who might otherwise go without coverage the chance to secure health insurance when they need it most, preventing gaps in their health care access. While changes in employment status, changing addresses, and turning 26 years old can also affect health insurance options, they don't universally trigger a special enrollment period in the same way. For instance, turning 26 typically allows a person to stay on their parent's plan until a certain age but doesn't create a SEP unless they lose that coverage. Similarly, changing addresses may impact one’s insurance plans or eligibility but does not automatically qualify a person for a special enrollment period.