Under which circumstance may an insurer discontinue a small employer group medical plan?

An insurer may discontinue a small employer group medical plan when it decides to discontinue offering the plan to all employers. This situation typically arises when the insurer determines that it no longer wishes to provide that particular type of plan for business reasons, such as changes in the market or financial considerations. The law allows insurers to discontinue a plan as long as they apply the decision uniformly across all groups.

In this context, it’s important to note that discontinuing the plan must not be selective or discriminatory against specific employers; it must be a blanket decision affecting all small employers enrolled in that plan. This approach ensures fairness and compliance with regulatory standards governing insurance practices.

Other options present scenarios that do not legally justify discontinuation of a plan. For instance, failing to pay premiums would typically result in policy cancellation, not an outright discontinuation of all plans offered. Hiring new employees or changing a business structure do not inherently provide grounds for an insurer to discontinue coverage. These circumstances are usually addressed through other policy provisions or options available to the employer without leading to plan discontinuation.