Red Head, Inc

Red Head, Inc., is a local beauty salon with three employees. Faye is black, Aimee is Jewish, and Sarah weighs 300 pounds. Statistics show that blacks have a higher rate of sickle cell anemia; Jews have a higher rate of Tay-Sachs Disease, and severely obese people have a higher rate of diabetes than the general population. Based on statistics provided by certified reputable sources regarding the likelihood of contracting the above diseases, the manager/owner of Red Head has set up a health plan in which Aimee pays a higher premium than Faye, with Sarah paying the highest premium. Which of the following is true?

A) This arrangement violates COBRA.
B) This arrangement violates HIPAA.
C) This arrangement violates ERISA.
D) Since the data used by the employer is from a certified reputable source, there is no violation of law because the insurance premium reflects the true risk.
E) This arrangement violates ADEA.