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The following statements are about the Health Insurance Portability and Accountability Act (HIPAA) as it...

The following statements are about the Health Insurance Portability and Accountability Act (HIPAA) as it relates to the small group market. Three of these statements are true and one statement is false. Select the answer choice containing the FALSE statement:

A.

A health plan that participates in the small group market is required to issue a contract to any employer that requests healthcare benefits, as long as the employer meets the statutory definition of a small group.

B.

A small group must consist of more than 10 employees in order to be underwritten on a group, rather than an individual, basis.

C.

A health plan is prohibited from canceling a small group’s healthcare coverage because of poor claims experience.

D.

A health plan that participates in the small group market is limited in placing restrictions such as waiting periods and pre-existing conditions exclusions to individuals in high risk categories.

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