Under HIPAA, when can a group health policy renewal be denied?

The correct answer is that a group health policy renewal can be denied when the contribution or participation rules have been violated. Under HIPAA (Health Insurance Portability and Accountability Act) regulations, group health plans are required to meet certain contribution and participation requirements to maintain compliance and ensure that sufficient numbers of employees are enrolled. If an employer does not comply with these rules—for instance, if they fail to enroll a minimum number of eligible employees, or if the contributions made toward employee coverage don't meet the established thresholds—the insurer has grounds to deny renewal of the policy.

This ensures that the group policy remains viable and helps to spread risk among a larger pool of insured individuals, which is fundamental to the functioning of group health insurance. It encourages employers to maintain participation and contribution levels that support the stability of the group health plan.

Other options, while they may contribute to issues regarding individual policies, do not directly pertain to HIPAA regulations concerning group health policy renewals. For instance, lack of payment is a typical reason for denying a policy but is not a direct violation of HIPAA. Similarly, changes in coverage or employee turnover may affect individual situations but do not necessarily violate the terms under which a group policy must be renewed according to HIPAA standards.