In Louisiana, a small employer may not consist of more than how many eligible employees?

• A. 10 employees
• B. 25 employees
• C. 50 employees
• D. 100 employees

Answer: (C)

Louisiana sets a cutoff for what counts as a small employer based on the number of eligible employees. This distinction matters because the rules that apply to group health insurance can differ between small and large groups. In Louisiana, a business is considered a small employer when it has 50 or fewer eligible employees. Therefore, a small employer may not consist of more than 50 eligible employees. If there are more than 50 eligible employees, the group is treated as a large-employer group and faces different requirements. The other numbers don’t fit because they fall below the cutoff and would still be considered small, or exceed the cutoff and thus would not be small.