State RegulationsAZ specificDifficulty 3/5
A Tucson employer asks how guaranteed issue and guaranteed renewal differ under the Affordable Care Act (42 USC 300gg). Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Under the Affordable Care Act (42 USC 300gg, implemented through 45 CFR 146 and 147), guaranteed issue means a plan must accept every applicant without health-status underwriting, while guaranteed renewal means an existing policyholder's coverage must be renewed. The two rules protect different moments in the coverage relationship: entry and continuation.
Why the other options are wrong
- A) The definitions are reversed; guaranteed issue governs new applicants, not renewals.
- B) Guaranteed renewal concerns existing policyholders, not new applicants, and guaranteed issue does apply in the individual market.
- D) Both reforms apply to group plans as well as individual coverage under the Act.
Memory hook
Issue = getting in; renewal = staying in — ACA protects both doors.