Which type of group health plan requires minimum enrollment percentages to be established?

The requirement for minimum enrollment percentages is primarily associated with major medical plans. These plans are designed to provide comprehensive coverage for a wide range of health care services and expenses. The introduction of minimum enrollment percentages helps ensure that the risk pool is substantial enough to share costs effectively among a larger number of participants. This is particularly important in major medical plans where the overall costs can be high, and a larger group helps maintain affordability and stability of premiums.

Minimum enrollment percentages also help mitigate the risk of adverse selection, where only those who expect high medical expenses would be likely to enroll without such requirements. By establishing a minimum percentage of participants, insurance providers can better predict costs and maintain an adequate level of risk distribution across the plan.

Other types of group health plans, like disability plans and church plans, may have different criteria for enrollment but do not specifically require minimum enrollment percentages in the same way that major medical plans do. Employee-sponsored plans can vary widely, and their enrollment requirements may not include mandatory minimums specific to the health plan itself.