State RegulationsMI specificDifficulty 1/5
A Michigan health insurer wants to charge a higher rate and provide reduced benefits for a 24-year-old dependent child than for younger dependents on the same plan. Under Michigan law, what is required?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
M.C.L. 500.3403 requires Michigan dependent child coverage to age 26 with the same benefits and the same rate as any other dependent, so an insurer may not create an inferior benefit or pricing tier for older dependent children. The Michigan Department of Insurance and Financial Services (DIFS) regulates compliance with this parity mandate.
Why the other options are wrong
- A) A reduced-benefit, higher-rate tier for adult dependents directly contradicts the same-benefits and same-rate requirement of M.C.L. 500.3403.
- C) Michigan law contains no full-time-employment condition that would permit reduced dependent benefits.
- D) Age 18 is not a rate-increase trigger under M.C.L. 500.3403; parity continues to age 26.
Memory hook
26 means equal: same benefits, same rate, no surcharge for older kids.