The PPACA stops insurance companies from canceling an individual's coverage just because they made a mistake on their insurance application. This protection applies to all health plans for those who get coverage _____________.

• A. Individually or through an employer.
• B. Through an employer only.
• C. Individually only.
• D. None of these are correct.

Answer: (A)

This protection addresses prohibiting canceling coverage due to mistakes on the application, and it applies to all health plans whether you obtain coverage on your own or through an employer. In other words, both individually purchased plans and employer-sponsored plans are covered, so the statement that it applies to those who get coverage either way is correct. The rule helps ensure you don’t lose coverage just because of a clerical error or inadvertent misstatement on an initial application, although fraud or intentional material misrepresentation can still be grounds for cancellation. Limiting the protection to only one path (employer or individual) would leave out a large portion of people, which is why the option encompassing both is the best description.