Final answer:
Enrolling in a new Medicare Advantage plan does not automatically terminate the previous plan; the new enrollment typically ends the old plan. This system avoids coverage lapses for individuals. Automatic enrollment is more common in savings plans due to behavioral economics insights.
Step-by-step explanation:
When a client enrolls in a Medicare Advantage (MA) plan, their previous MA plan does not automatically terminate. Instead, individuals actively have to enroll in a new MA plan during the appropriate enrollment period, and the enrollment in a new plan will typically cause the previous MA plan to end.
This approach helps ensure that there are no lapses in coverage for the individual. Taking a cue from behavioral economics, more plans have been adopting automatic-enrollment features, primarily in the context of savings and retirement plans, to facilitate easier enrollment and participation for clients.