The Following Statements Are About a Health Plan's Underwriting of Small

question 129

Multiple Choice

The following statements are about a health plan's underwriting of small groups. Select the answer choice containing the correct statement.

• A) Almost all states prohibit health plan s from rejecting a small group because of the nature of the business in which the small business is engaged. 31
• B) Most states prohibit health plans from setting participation levels as a requirement for coverage, even when coverage is otherwise guaranteed issue.
• C) In underwriting small groups, a health plan's underwriters typically consider both the characteristics of the group members and of the employer.
• D) Generally, a health plan's underwriters require small employers to contribute at least 80% of the cost of the healthcare coverage.

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Definitions:

Not-for-profit

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Non-financial Measures

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Previous Measure

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Du Pont Chart

A graphical representation that breaks down the return on equity into its components to help understand a company’s financial performance.