What is the main purpose of a statement of understanding?

The main purpose of a statement of understanding is confirmed enrollment and standard disclosures. This document serves as a critical communication tool between the insurer and the insured. By confirming enrollment, it provides assurance to the consumer that their application has been successfully processed and that they are now part of the health plan. Additionally, it includes standard disclosures that inform the consumer about important aspects of their coverage, rights, and responsibilities, helping to ensure that they are fully aware of the terms under which they are enrolled.

By facilitating clear communication and confirming key details, the statement of understanding plays a vital role in the enrollment process, ensuring that consumers have access to essential information that affects their health coverage. This helps to foster transparency and trust between the insurer and the insured.