Texas General Lines — Life, Accident, Health and HMOTexas Statutes and Rules Specific to Accident, Health and HMOHard
A small employer in Texas with 30 eligible employees wishes to offer group health insurance. Under Texas law, what is the minimum percentage of eligible employees who must elect to participate in a non-contributory group health plan for the plan to be issued?
- A100%
- B75%
- C25%
- D50%
Show answer & explanationAnswer & explanation
Correct answer: A. 100%
For a non-contributory group health plan in Texas, 100% of eligible employees must elect to participate because the employer pays the entire premium, ensuring broad coverage and preventing adverse selection.
Why the other options are wrong
- B. While a high percentage, it is not the standard requirement for non-contributory plans.
- C. This percentage is typically too low for a non-contributory plan and might be seen in some contributory plans.
- D. This percentage is commonly required for contributory plans, not non-contributory plans.
Non-Contributory Group Plan Participation (TX)
A group health insurance plan where the employer pays 100% of the premiums, requiring 100% of eligible employees to participate.
- Employer pays entire premium.
- Mandatory 100% participation of eligible employees.
- Designed to prevent adverse selection.
Memory trick: For 'Non-Contributory' plans, it's 'All-In' or nothing, the employer pays.