State RegulationsMA specificDifficulty 2/5
An employer with a Massachusetts group health plan wants to enroll only its managers, even though other employees satisfy the plan's written eligibility classifications. What does the Massachusetts nondiscrimination rule for employer group health insurance require?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.G.L. c. 175, § 108C governs the eligibility side of employer group health insurance in Massachusetts: eligibility may be defined by classifications such as hours and tenure, but those classifications must be applied without favoritism — the employer may not manipulate enrollment to cover a preferred class while excluding employees who meet the plan's own conditions. The rule keeps group coverage an employee benefit rather than a selective perk.
Why the other options are wrong
- A) Compensation level is not a lawful sorting tool once the plan's eligibility classifications are set; M.G.L. c. 175, § 108C requires consistent application of those classifications.
- B) The issue is not waivers from excluded employees; the nondiscrimination rule addresses who must be offered coverage under the plan's classifications.
- D) There is no DOI pre-approval mechanism for excluding classes of employees; M.G.L. c. 175, § 108C itself forbids the favored-class restriction.
Memory hook
Set the class honestly, then apply it to everyone — no golden-circle enrollments.