Under what condition may a carrier discontinue coverage for small group health benefit plans?

A carrier may discontinue coverage for small group health benefit plans if there is a failure to pay the premium prior to the end of the grace period. The grace period is a crucial time frame during which an insured party can make a late payment without losing coverage. If payment is not received within this period, the insurer is within its rights to terminate the policy.

Payment of premiums is essential to maintaining coverage, and insurers rely on timely payments to manage risk and provide benefits to all enrolled members. Not adhering to these payment obligations can lead to a lapse in coverage, making it a definitive basis for a carrier to discontinue health benefit plans for a group.