Final answer:
A carrier may discontinue or refuse to renew a small group health benefit plan if the employer fails to comply with plan requirements, as per the regulations set forth by the Affordable Care Act.
Step-by-step explanation:
Under small group health benefit plans, a carrier may discontinue coverage or may refuse to renew such a plan if the employer fails to comply with plan requirements. In the U.S. health insurance market, often health insurance is sold through groups associated with places of employment, which is important for balancing risks for insurance companies and reducing the issue of adverse selection. The Patient Protection and Affordable Care Act (ACA) mandates that all employers with more than 50 employees must offer health insurance and includes provisions for coverage of individuals with preexisting conditions, as well as the employer and individual mandates. However, certain conditions such as compliance with plan terms must be met by employers for the continuation of these health benefits.