State RegulationsFL specificDifficulty 2/5
A Florida small employer asks its group health carrier to drop one employee from the plan because that employee has been seriously ill and generating claims. Under Florida law, the carrier:
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under Chapter 627, Florida Statutes, small employer coverage rules prohibit using an individual employee's health status or claims experience as a basis for terminating that employee from the group plan. Terminations are limited to grounds the law recognizes, such as the employee ceasing to be eligible or nonpayment, which is precisely the protection that keeps group coverage meaningful for the workers who need it most.
Why the other options are wrong
- A) An employer's request is not a statutory termination ground, and illness is the very factor the law protects against.
- B) There is no exit-fee mechanism that launders an improper health-based termination into a lawful one.
- C) Even the employee's written consent does not convert a health-status-based termination into a permitted ground under the small employer rules.
Memory hook
Sick employee with claims stays on the group plan.