(1) Participation in CHIP is voluntary and an enrollee may withdraw from the program at any time.

(2) An enrollee, parent or guardian may request, without good cause, disenrollment from one insurer and enrollment with another insurer annually.

(3) An insurer, based on good cause, may request that the department disenroll an enrollee. The request with the reason for the request must be in writing.

(a) CHIP benefits may be terminated for good cause if the enrollee, parent or guardian has violated rules adopted by the Montana commissioner of insurance for enrollment with an insurer.

(b) Good cause shall be defined as provided in Montana insurance law and rules and does not include an adverse change in health status.

(4) Disenrollment takes effect, at the earliest, the first day of the month after the department receives the request for disenrollment, but no later than the first day of the second calendar month after the request for disenrollment is received. The enrollee remains enrolled with the insurer and the insurer is responsible for benefits covered under the contract until the effective date of disenrollment, which is always the first day of a month.

(5) The department will disenroll an enrollee from a particular insurer if:

(a) the contract between the department and the insurer is terminated;

(b) the enrollee permanently moves outside the geographic area served by the insurer and:

(i) no other insurer can provide care through participating providers; and

(ii) the enrollee, parent or guardian does not agree to travel to the nearest participating provider for medical care except in the instances noted in ARM 37.79.605; or

(c) the enrollee becomes ineligible for CHIP.