In the small group health insurance market, 'guaranteed issue' means...
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Guaranteed issue, a centerpiece of the Affordable Care Act, requires health insurers to accept every eligible applicant or small group without considering health status, medical history, or claims experience. An insurer may not decline a small group, charge it more because of member health, or exclude preexisting conditions. The rule applies across the individual and small group markets and is a key ACA-era protection. It does not freeze premiums, guarantee a fixed duration, or restrict eligibility to healthy groups; rating still varies by age, geography, and tobacco use within statutory limits.
Why the other options are wrong
- B) Guaranteed issue is about acceptance, not about locking in a one-year policy term.
- C) Claims experience is exactly what guaranteed issue prohibits insurers from using to decline coverage.
- D) Premiums remain subject to rating rules and annual changes; guarantee applies to acceptance, not pricing.
Memory hook
Guaranteed issue means every eligible small group walks in, no health test.