State RegulationsNC specificDifficulty 2/5
Under North Carolina's small-employer health coverage definitions, an employer qualifies as a small employer if it employed eligible employees on at least half of its working days in the preceding calendar quarter and had no more than how many eligible employees, with an eligible employee being one whose normal workweek is at least how many hours?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under G.S. 58-50-110(22),(10), a small employer is one that, on at least 50% of its working days during the preceding calendar quarter, employed no more than 50 eligible employees, and an eligible employee is a full-time employee whose normal workweek is 30 or more hours. Since 2014, this definition applies to grandfathered group plans.
Why the other options are wrong
- A) The headcount and workweek figures are both understated; the statute uses no more than 50 eligible employees and a 30-hour workweek under G.S. 58-50-110(22),(10).
- B) 31 is not the small-employer headcount; it borrows the 31-day grace and conversion figure that belongs to premium and conversion rules, not employer size.
- C) The headcount and workweek figures are both overstated; the statutory ceilings are 50 eligible employees and a 30-hour workweek.
Memory hook
Small employer: 50 people, 30-hour weeks, half the quarter.