State RegulationsNY specificDifficulty 3/5
An association seeks small employer health coverage in New York for its member businesses, which vary in size. Under Reg 145, how is the small-employer employee-count test applied to association members?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Reg 145 (11 NYCRR Part 360 (Reg 145)), when association members purchase small employer coverage, the employee-count test is applied to each member group separately: each member business must be within the small-employer range of no more than 50 employees. The association's total workforce is not aggregated, so a large association can still deliver small-group access to its genuinely small member firms.
Why the other options are wrong
- A) The association's combined headcount is irrelevant; each member group is tested individually against the size limit.
- B) At least 50 reverses the rule; member groups must have no more than 50 employees, not at least that many.
- C) Averaging the counts of all member businesses is not permitted; the test looks at each member group's own employee count.
Memory hook
Associations: each member firm counts its own heads, up to 50.