Florida 2-15 Life, Health and Variable Annuity AgentFlorida Laws and Regulations Specific to Health InsuranceHard
A Florida business with 18 employees is seeking to purchase group health insurance. Under Florida law, which of the following statements accurately describes how this business would be classified for health insurance purposes?
- AIt is considered a large employer and subject to federal COBRA.
- BIt is not subject to any specific state or federal group health insurance regulations due to its size.
- CIt is considered a small employer and subject to Florida's small employer health insurance reforms.
- DIt is considered a mid-size employer and falls under a special state classification.
Show answer & explanationAnswer & explanation
Correct answer: C. It is considered a small employer and subject to Florida's small employer health insurance reforms.
In Florida, a small employer is generally defined as one with 1 to 50 employees. Therefore, a business with 18 employees falls within this definition and is subject to Florida's small employer health insurance reforms, which include guaranteed issue and renewability.
Why the other options are wrong
- A. Large employers typically have 51 or more employees; federal COBRA applies to employers with 20 or more employees, but the small employer classification is more specific here.
- B. All businesses offering group health insurance are subject to either state or federal regulations, regardless of size.
- D. There is no specific 'mid-size employer' classification for health insurance purposes in Florida that would supersede the small employer definition.
Florida Small Employer Definition
In Florida, a small employer for health insurance purposes is generally defined as one employing between 1 and 50 eligible employees.
- Applies to group health insurance.
- Subject to specific state reforms (e.g., guaranteed issue).
- Ensures access and affordability for smaller businesses.
Memory trick: Small Florida businesses keep employees under fifty.