When can a group health policy renewal be denied according to HIPAA?

A group health policy renewal can be denied according to HIPAA when contribution or participation rules have been violated. Under HIPAA regulations, group health plans are subject to non-discrimination rules that require them to have fair contribution and participation standards for all eligible participants. If these standards are not met, it may lead to non-renewal of the policy.

For example, if an employer fails to make the required contributions to the health plan or if the participation levels among employees fall below the minimum thresholds mandated by health and insurance regulations, the insurer may decide to deny renewal to maintain compliance with these requirements.

In relation to the other options, filing a claim does not itself provide grounds for denying a renewal; rather, it is a normal part of the insurance process. Changing insurance providers could lead to a new policy but would not cause denial of renewal under existing regulations. Lastly, a decision based solely on the expense of coverage does not align with the standards established by HIPAA, which emphasizes the fairness of contributions and participation rather than purely the pricing of coverage.