What type of health coverage is essential for small groups according to Arizona regulations?

The designation of essential health benefits is crucial for small groups under Arizona regulations because it encompasses a defined set of health care service categories that must be covered by all health plans offered in the individual and small group markets. This requirement stems from the Affordable Care Act, which ensures that essential health benefits provide a baseline of coverage that includes services like emergency care, maternity and newborn care, mental health services, and prescription drugs.

This framework is pivotal as it guarantees that small businesses can offer comprehensive health care options to their employees, promoting broader access to important medical services. Essential health benefits serve to protect consumers from inadequate coverage, giving them assurance that a wide range of health needs will be met.

Other options do not encapsulate the full scope of health care services mandated for small groups. For instance, major medical insurance refers to a type of comprehensive coverage but does not specifically align with the mandated essential health benefits framework. Basic preventive services, while important, do not cover the extensive range of categories included in essential health benefits. Health savings accounts are a financial tool allowing users to save for medical expenses but do not constitute a form of insurance coverage per se.