Which plan is typically employer-sponsored?

Which plan is typically employer-sponsored?

• A. Employer-sponsored insurance
• B. Individual marketplace plan
• C. HDHP
• D. HMO

Answer: (A)

The plan typically provided by employers is a group health plan funded and offered through the workplace. Employers choose a plan, negotiate rates with an insurer, and often cover a portion of the premiums while employees contribute through payroll deductions. This arrangement is designed to cover employees and their dependents as part of a benefits package, making it the most common way workers gain health coverage. In contrast, an individual marketplace plan is purchased directly by individuals on the ACA marketplace, not sponsored by an employer. A high-deductible health plan describes the deductible structure and can be part of either employer-sponsored or individually purchased plans. An HMO is a network-based plan type that can appear in both settings.

The plan typically provided by employers is a group health plan funded and offered through the workplace. Employers choose a plan, negotiate rates with an insurer, and often cover a portion of the premiums while employees contribute through payroll deductions. This arrangement is designed to cover employees and their dependents as part of a benefits package, making it the most common way workers gain health coverage. In contrast, an individual marketplace plan is purchased directly by individuals on the ACA marketplace, not sponsored by an employer. A high-deductible health plan describes the deductible structure and can be part of either employer-sponsored or individually purchased plans. An HMO is a network-based plan type that can appear in both settings.