State RegulationsAZ specificDifficulty 2/5
What does the Affordable Care Act do with respect to annual and lifetime dollar limits on essential health benefits?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Affordable Care Act (45 CFR 147; 42 USC 300gg-300gg-91), health plans may not impose annual or lifetime dollar limits on essential health benefits, protecting policyholders from coverage that quietly expires mid-illness. The rule is one of the Act's core consumer protections, and it applies regardless of how catastrophic the claim becomes.
Why the other options are wrong
- A) unrestricted dollar limits are exactly what the Act forbids.
- B) both types of limits are barred, not just annual limits.
- C) the Act bans dollar limits; it does not mandate minimum ones.
Memory hook
No dollar caps on what matters.