A carrier may discontinue small group health benefit coverage if the employer fails to do what?

A carrier has the right to discontinue small group health benefit coverage if the employer does not pay the premium prior to the end of the grace period. This is a standard practice in health insurance, where payment of premiums is essential to ensure continued coverage. The grace period is a designated time frame during which an employer can make payment without losing coverage. If the premium remains unpaid after this period, the insurance provider can justifiably terminate the policy due to breach of contract.

The importance of timely premium payment lies in the financial viability of the insurance plan. Insurance carriers rely on consistent premium payments to manage risks and provide coverage to their clients. Without these payments, the insurer cannot sustain the policy and therefore has the right to discontinue coverage.

In contrast, factors like the number of employees or a competitor’s policy status do not directly relate to the continuation of health benefit coverage under the agreement between the employer and the insurance carrier. Bankruptcy may affect financial standings but is not a valid reason for an immediate termination of coverage under typical circumstances, especially when the grace period is respected.