State A, which requires guaranteed issue of at least two mandated healthcare plans, has established a typical health coverage reinsurance program for small employer groups. One true statement about this reinsurance program is that it most likely
A) is administered by a commercial reinsurance company that operates in State A
B) allows a small employer carrier operating in State A to reinsure either an entire small group or specific individuals within the group
C) has, for the coverage on a plan, a base premium, which is multiplied by a factor of 2 in the case of reinsurance on entire groups or a factor of 3 for reinsurance on individuals
D) prohibits a small employer carrier operating in State A from placing individuals enrolled in small groups in a reinsurance pool 32
Correct Answer:
Verified
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