What is the minimum number of participating members required for a non-contributory group health plan?

For a non-contributory group health plan, the requirement is that everyone eligible for coverage must be enrolled in the plan, which translates to 100% participation. This type of plan is fully funded by the employer, meaning no part of the premium is paid by the employees.

In this context, achieving 100% participation is crucial because the overall risk pool must be large and stable enough to manage healthcare costs effectively. When all eligible members participate, it helps distribute the risks and costs across the entire group, leading to more predictable and manageable expenses for the insurer.

This requirement ensures that the plan is effective and sustainable, as a lower level of participation, such as 25%, 50%, or 75%, could lead to higher costs per member and potential issues with coverage stability, making it inefficient for both the insurer and the plan members. Thus, the correct understanding of a non-contributory group health plan's requirements underlines the significance of full participation.