State RegulationsAZ specificDifficulty 2/5
A Scottsdale employer asks about Affordable Care Act (42 USC 300gg) market reforms. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Affordable Care Act (42 USC 300gg and its implementing regulations), dependent children may remain covered under a parent's health plan, and rescission of coverage is prohibited except in cases of fraud or intentional misrepresentation. These market reforms broaden access and protect enrollees from arbitrary coverage terminations.
Why the other options are wrong
- A) Rescission without notice is precisely what the Act prohibits.
- B) The Act restricts dollar caps on essential health benefits rather than requiring them.
- C) The Act expands, rather than eliminates, dependent coverage under a parent's plan.
Memory hook
Kids stay on the plan; rescind only for fraud — 42 USC 300gg.