State RegulationsMA specificDifficulty 1/5
Under Massachusetts law, how many eligible employees must a business have to qualify as an eligible small business for purposes of small-employer health coverage?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
M.G.L. c. 176J, § 1 defines an eligible small business as a firm with 1 to 50 eligible employees, counting firms whose majority workforce is in Massachusetts and treating affiliated companies or companies combined for filing purposes as a single business. The definition is inclusive at the bottom — a sole employee qualifies — and carriers may choose to cover larger firms under the chapter, but the statutory eligible-small-business band runs from 1 to 50.
Why the other options are wrong
- B) The Massachusetts band is not 2 to 100; M.G.L. c. 176J, § 1 sets the eligible small business range at 1 to 50 eligible employees.
- C) Fifty is the top of the statutory band, not the entry point; a business with a single eligible employee already qualifies under M.G.L. c. 176J, § 1.
- D) A ten-employee ceiling is far narrower than the statute; coverage eligibility runs up to 50 eligible employees.
Memory hook
One to fifty — that's the Massachusetts small-business band, bottom and top.