Which of the following is a characteristic of a group health insurance policy in Rhode Island?

A group health insurance policy is designed to cover a group of individuals under a single contract, typically provided by an employer or an organization. One of the essential characteristics of these policies is that they require a minimum number of enrollees to establish the group. This requirement is crucial because it helps spread the risk across a larger pool of individuals, making coverage more affordable and viable for the insurer.

In Rhode Island, like in many other jurisdictions, group health insurance is particularly important for ensuring that small groups or organizations can obtain coverage without the same restrictions that might apply to individual health insurance policies. This foundational aspect enhances the stability and predictability of the insurance market, contributing to lower costs for covered individuals when compared to individual policies.

For context, individual premiums can sometimes be higher, especially if there are fewer participants to share the risk. Coverage for individuals only does not align with the concept of group insurance, which is inherently collective in nature. Additionally, while many policies may offer substantial benefits, unlimited lifetime benefits are not a standard feature of all group health insurance policies and are subject to regulations and limits that may vary by provider and specific plan design.