Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
In the small group health insurance market, the requirement that insurers must accept every eligible employer group regardless of the health status of its employees is called:
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Guaranteed issue means an insurer must accept all applicants who meet the eligibility requirements and may not reject a group because of the health history of its employees or dependents. Under the ACA, guaranteed issue applies to individual and all new group health coverage, ending the old practice of medical underwriting that left sicker groups uninsured. Renewability, by contrast, concerns whether the insurer can drop the policy once issued.
Why the other options are wrong
- A) Guaranteed renewable means the insurer cannot cancel the policy except for nonpayment of premium; it concerns renewal, not initial acceptance.
- B) Conditionally renewable allows the insurer to renew only under certain conditions and is about continuation, not initial acceptance.
- D) A conversion privilege lets an individual convert from a group plan to an individual policy; it is not the obligation to accept all groups.
Memory hook
Guaranteed issue = everyone gets in the door. Guaranteed renewable = once in, you cannot be kicked out for health.