Which statement best describes a group health plan?

• A. An employee benefit plan that provides medical care to participants (typically employees, their spouses, and their dependents).
• B. A plan that covers only dental care
• C. A plan that covers life insurance only
• D. A plan that is funded solely by government contributions

Answer: (A)

A group health plan is an employee benefit plan that provides medical care to participants, typically employees and their spouses and dependents. This means it covers a broad range of medical services, not just dental or life insurance, and it’s offered through an employer or other employee-based group. It’s funded through contributions from both the employer and employees, rather than being funded solely by the government. Because it is employer-based coverage, these plans are generally subject to COBRA continuation requirements when a qualifying event occurs.