State RegulationsMA specificDifficulty 2/5
Which statement correctly describes the availability and renewability of small-employer health plans in Massachusetts?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Massachusetts law makes small-employer medical plans guaranteed issue and guaranteed renewable: M.G.L. c. 176J, with its availability and renewability rules administered through 211 CMR 66.06, bars carriers from refusing eligible small groups or from refusing to renew their coverage, and the individual market is built to mirror the small-group offerings. Neither claims experience at purchase nor at renewal can justify a carrier's refusal.
Why the other options are wrong
- A) Unfavorable claims experience is not a lawful ground to decline a small group; the guaranteed-issue rule of M.G.L. c. 176J applies at the front end.
- C) There is no five-year vesting of renewability; 211 CMR 66.06 makes renewal guaranteed from the outset of coverage.
- D) The individual market is designed to mirror the small-group offerings, not to hand carriers greater discretion to decline.
Memory hook
Small group, no refusal, no nonrenewal — and individuals follow the same mirror.