State RegulationsMI specificDifficulty 2/5
An independently employed web designer in Royal Oak is the business's only worker and applies for small-employer health coverage. The carrier denies the application, asserting the business is too small to be a small employer. What is the outcome under Michigan law?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
M.C.L. 500.3701(q) sets the small-employer range at 1 to 50 full-time-equivalent employees, so a one-person business falls within the definition, and M.C.L. 500.3707 obligates carriers to make coverage available to a small employer's eligible employees. The carrier's too-small rationale restates the superseded pre-2018 floor of 2 employees.
Why the other options are wrong
- A) The 2-employee floor was eliminated effective January 1, 2018; the current floor is 1.
- B) Self-employment does not disqualify an employer that fits the 1 to 50 definition.
- D) No federal complaint is a precondition; the availability duty arises directly under the Michigan Insurance Code.
Memory hook
One worker is enough — Michigan small group starts at 1.