What characterizes an employer group health plan (EGHP)?

An employer group health plan (EGHP) is characterized by coverage that is independent of the enrollee's employment status. This means that the plan can provide health care benefits to individuals regardless of whether they are actively employed or have transitioned to retirement. EGHPs are designed to extend benefits based on group membership, rather than strictly the current employment status of the individual.

While some features may vary among different employer plans, an essential defining characteristic is that they can maintain coverage even as employees change their employment situation. This might include allowing former employees or their dependents to retain coverage under certain conditions, which aligns with the concept that their conditions of coverage are not solely tied to active employment.

The other options suggest limitations or specific conditions that do not fully encompass the broader definition of an EGHP. For instance, not all employer health plans are restricted to full-time employees, many do offer dependent coverage, and coverage for retired employees is just one aspect of how these plans may operate but does not define the entirety of EGHP.