Covered California Certified Enroller Practice Exam

What does Passive Renewal mean for consumers?

1. They must select a new plan each year

2. They will be automatically enrolled in their current plan

3. They are required to review their coverage

4. They will be notified of their plan changes

The correct answer is: They will be automatically enrolled in their current plan

Passive Renewal refers to the process by which consumers are automatically enrolled in their current health plan for the upcoming coverage year unless they choose to make changes. This means that if a consumer does not actively select a different plan, they will remain in the same plan they had in the previous year. This process is designed to ensure that consumers do not lose coverage inadvertently due to inaction during the annual enrollment period. While it is true that consumers are often encouraged to review their plans and consider their options, opting for a passive renewal simplifies the experience, particularly for those who are satisfied with their current coverage. In addition, being automatically notified of plan changes is part of the process, but it does not influence the nature of passive renewal itself, which is fundamentally about maintaining the same coverage unless the consumer chooses otherwise.