What is the purpose of eligibility redetermination by the Marketplace?

• A. To periodically review subsidy eligibility and plan enrollment to ensure accuracy
• B. To cancel plans automatically
• C. To verify identity only
• D. To adjust employer contributions

Answer: (A)

The process tests how the Marketplace keeps subsidy and plan enrollment accurate over time. Eligibility redetermination is the periodic check to confirm that a person still qualifies for any premium tax credits or other subsidies and that their plan enrollment matches their current eligibility. It accounts for changes in income, family size, or other factors that can affect eligibility, and it updates subsidy amounts or enrollment accordingly to prevent over- or under-payment. It isn’t simply about identity verification, and it isn’t about automatically canceling plans—the outcome may involve adjusting subsidies or enrollment if eligibility has changed.