Which statement is true about a Special Enrollment Period (SEP)?

• A. It is a time outside AEP when enrollment or switching is allowed; example: moving to a new area
• B. SEP occurs automatically during the AEP
• C. SEP only applies to Medicare Advantage plans
• D. SEP cannot be used to enroll in a PDP

Answer: (A)

Special Enrollment Periods let you enroll in or switch Medicare plans outside the regular enrollment window when you have a qualifying life event. Moving to a new area is a classic example, because a change in location can affect plan availability, networks, and costs, making it appropriate to adjust your coverage outside the usual period.

This is why the described statement is the true one: SEP is a time outside the annual election period during which enrollment or switching is allowed due to a qualifying life event. It’s not automatic during the annual enrollment period, and it isn’t limited to Medicare Advantage—SEP applies to MA, MA-PD, and stand-alone prescription drug plans (PDP), so you can use an SEP to enroll in a PDP as well.