NY Marketplace ended coverage?

One of my aunts is going to be on Medicare on August 1st. Since she is enrolled in LTSS and expected to be dual-eligible, she was automatically enrolled in Medicare and a D-SNP plan in May, but coverage won't start until August 1st. However, the NY Marketplace sent us a message on May 31st, stating that her coverage would be ending May 31st because they claimed in their system, she was already on a Long Term Care Plan and had to apply for Medicaid through the LDSS instead. As far as I can tell, the marketplace is supposed to refer your case to the LDSS if they expect you to be eligible for Medicare and continue coverage until eligibility is determined there. Are they allowed to simply end coverage with 3 hours notice? She reapplied through the LDSS and was approved, but her insurance plan states that since it's not a reinstatement, they can only put her on a Managed Care Plan again on July 1st, the month after she was approved. She currently only has straight Medicaid, but Home Care can't be billed through straight Medicaid, so I was wondering if this was actually correct procedure or someone messed something up here, because she isn't going to have Home Care for this entire month due to this.

submitted by /u/madejustforthiscode
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