What characterizes a Large Group Health Plan (LGHP)?

A Large Group Health Plan (LGHP) is characterized by being offered by employers that typically have 100 or more employees. This classification is significant because it affects the types of benefits and protections required under various regulations, including the Affordable Care Act (ACA). Companies that provide LGHPs are subject to different rules regarding the coverage they must offer, which can be less stringent compared to smaller employers.

The distinction in employee counts is crucial; plans offered by employers with 50 to 99 employees may have different requirements than those available to larger organizations with 100 or more employees. Understanding this threshold helps clarify what constitutes an LGHP and the associated obligations under federal laws, thus making option B the correct characterization.

Other options can be seen in this context: while the first option mentions 50 or more employees, it does not meet the defining threshold for a Large Group Health Plan, as that number refers more aptly to Small Group Health Plans in a broader scope. The third option about government-sponsored healthcare programs does not fall under the category of an LGHP as it pertains specifically to employer-sponsored plans. Lastly, the mention of only part-time employees is inaccurate; LGHPs typically involve full-time employees, as full-time status is a key factor in