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Question
Red Head Inc. is a local beauty salon with three employees. Faye is black, Aimee is Jewish and Sarah is 300 lbs. Statistics show that blacks have a higher rate of sickle cell anemia; Jews have a higher rate of Tay Sachs Disease and severely obese people have a higher rate of diabetes than the general population. Based on statistics provided by certified reputable sources regarding the likelihood of contracting the above diseases, the manager/owner of Red Head has set up a health plan in which Aimee pays a higher premium than Faye, with Sarah paying the highest premium.A.This arrangement violates COBRA.
B.This arrangement violates HIPAA.
C.This arrangement violates ERISA.
D.Because the data used by the employer is from a certified reputable source, there is no violation of law because the insurance premium reflects the true risk.
Answer
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