Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Under the ACA, small group health plans must:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Guaranteed issue requires small group carriers to accept every eligible employer and every eligible employee who applies, without regard to health status, claims history, or preexisting conditions. Premiums are community-rated within a rating area, subject only to limited permitted factors such as age and tobacco use. This rule is central to the ACA's small group reforms and is tested under the small group guaranteed-issue material in AH-III.B.3, which also addresses employer tax credits and QSEHRA/ICHRA options.
Why the other options are wrong
- B) Rejecting high-risk groups is exactly what guaranteed issue prohibits in the small group market.
- C) Medical underwriting of individuals is not permitted for small group plans under the ACA.
- D) Preexisting conditions cannot be used to deny small group coverage; guaranteed issue forbids it.
Memory hook
Guaranteed issue = every group and employee gets in the door.