Arizona Life and Health Practice Exam

In Arizona, how many employees are needed for a small employer medical expense plan?

1. 1

2. 2

3. 5

4. 10

The correct answer is: 2

In Arizona, a small employer medical expense plan is defined for businesses that employ at least two but not more than 50 employees. This definition aligns with the general understanding of small group insurance coverage, which considers a minimum of two employees necessary for such plans to be applicable. This requirement ensures that the insurance can be structured to provide coverage under the small group market. The designation of two employees allows flexibility for businesses with minimal staff levels while still fostering access to necessary health coverage for employees. Understanding this threshold is essential for compliance with state health laws as well as for guiding small employers in the options available for providing health benefits to their employees.