Under PPACA, an individual health insurer may NOT:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
PPACA prohibits health insurers from applying pre-existing condition exclusions and from denying coverage or charging higher premiums based on the health status of the applicant in both the individual and group markets. This is the cornerstone consumer protection that ended medical underwriting for comprehensive health coverage and guaranteed that a person with a history of illness can obtain insurance at the same price as a healthy person. Deductibles, smoker-status pricing, and first-premium requirements remain lawful elements of plan design and underwriting practice.
Why the other options are wrong
- B) Deductibles remain a lawful and common cost-sharing feature of health plans, so this option mistakes a standard design element for a prohibition.
- C) PPACA still permits tobacco-based premium variation within statutory limits in many markets, so this option overstates the restriction on smoker pricing.
- D) Collecting the first premium before coverage is effective is standard insurance practice, so this option describes a normal payment condition rather than a violation.
Memory hook
Your medical history is off-limits now: no pre-existing exclusions, no denials, no health-based pricing.