In a group health plan, what is the required participation for contributory and noncontributory plans?

• A. Contributory 75% of eligible members; Noncontributory 100% of eligible members
• B. Contributory 100%; Noncontributory 75%
• C. Contributory 50%; Noncontributory 100%
• D. Contributory 80%; Noncontributory 90%

Answer: (A)

The key idea is how many eligible employees must enroll in a group health plan, based on who pays the premium. In a contributory plan where employees pay part of the premium, at least 75 percent of eligible employees must participate. In a noncontributory plan where the employer pays the full premium, participation must be 100 percent of eligible employees. This ensures the plan remains viable and fairly distributed, given who bears the cost.

Therefore, the correct standard is contributory plans require 75% participation, while noncontributory plans require 100% participation. The other options mix these thresholds, which isn’t how participation requirements are typically defined.