What is a common limitation of group health insurance plans under federal law?

Group health insurance plans often include a limitation where coverage typically ends after termination of employment. This is significant because it reflects the nature of group insurance, which is usually employer-sponsored. When an individual is no longer employed by the group sponsor, their eligibility for the group health plan ceases, although they may be eligible for COBRA continuation coverage, which allows them to maintain their health coverage for a limited time after leaving employment.

The termination of coverage upon job loss emphasizes the relationship between employment and insurance benefits in group plans. This limitation is important for individuals to understand, as losing coverage can impact access to necessary medical services and financial stability.

In contrast, while the other options might describe other limitations or conditions in certain contexts, they do not reflect the most consistent or widespread limitation across group health insurance plans under federal law. For instance, federal laws, including ERISA (Employee Retirement Income Security Act), provide regulations that can prevent some exclusions of pre-existing conditions or the exclusion of certain conditions based on employment status. Hence, the option regarding the end of coverage after employment termination is correctly identified as a common limitation.