In the context of small business health insurance, what is the maximum number of employees that defines a small business?

• A. 50 employees or less
• B. 200 employees or less
• C. 100 employees or less
• D. 250 employees or less

Answer: (C)

In small business health insurance, the important idea is where the line is drawn between small and large groups based on how many employees the business has. The defined upper limit for a small business in this context is 100 employees. That means a company with 100 or fewer workers is eligible for small group plans, which often come with specific underwriting rules and premium structures tailored to smaller employers. If a business has more than 100 employees, it generally falls into the large-group category with different pricing and rules. It’s worth noting that some states or programs use a 50-employee threshold, but within this exam’s framework, the cutoff is 100.