According to the Health Insurance Portability and Accountability Act (HIPPA), when can a group health policy renewal be denied?

• A. Participation or contribution rules have been violated
• B. premium late payments
• C. change in group roster
• D. enrollment of new employees

Answer: (A)

HIPAA requires group health plans to offer guaranteed renewability, so renewal cannot be denied based on health status or typical health-related factors. Renewal can be denied only if the group fails to meet its own eligibility rules, specifically participation rules (the required number of eligible employees enrolled) or contribution rules (the required employer/employee contributions toward the premium). If those eligibility requirements aren’t met, denial of renewal is allowed. Changes in the group roster or enrolling new employees are part of normal eligibility management and don’t automatically justify denial. Late premium payments can affect coverage due to nonpayment, but the specific renewal denial tied to HIPAA is connected to violations of participation or contribution requirements.