In which scenario would the Marketplace terminate coverage for the entire family?

The scenario in which the Marketplace would terminate coverage for the entire family occurs when one family member applies for their own plan. This is because, under the rules governing Marketplace coverage, individuals within a family are generally required to apply together on a single application to maintain a unified family plan. When one family member opts to apply separately for their own coverage, it creates a situation where the original family coverage no longer applies, resulting in the termination of coverage for all members in that specific family plan.

In contrast, if the family is auto-reenrolled, their coverage would typically continue without interruption. Similarly, moving out of state usually requires updating the application, but it doesn’t mean immediate termination; rather, it might necessitate a transition to a new plan based on the new state's options. Finally, if one member does not follow up on their plan, it does not automatically lead to termination of coverage for the entire family. There are often processes in place to address an individual member’s situation without affecting the entire family's coverage.