Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
Under the Affordable Care Act's guaranteed issue requirement, small-group health plans must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Guaranteed issue requires health insurers to offer and sell coverage to any eligible individual or employer group that applies, without regard to health status, claims experience, or preexisting conditions. This applies to all new group and individual health insurance under the Affordable Care Act. Small groups therefore cannot be turned down based on the health of the group or its members. Guaranteed issue is a cornerstone of the ACA's market reforms and is tested in the small-group objectives.
Why the other options are wrong
- B) No medical exam or health-based acceptance requirement may be imposed; coverage must be offered without regard to health status.
- C) Guaranteed issue prohibits denying coverage based on claims history or poor past experience.
- D) Guaranteed issue applies to small groups as defined in California (2-100 employees) and other markets; it is not limited to groups of 500 or more.
Memory hook
Guaranteed issue = the door is always open. No exam, no claims-history veto, no turning sick groups away.