What is employment-based health insurance?

Employment-based health insurance refers to a type of health coverage that is provided by an employer to its employees as part of their benefits package. This insurance is typically offered as a way to attract and retain workers, ensuring that they have access to necessary medical care without bearing the entire cost themselves.

In this system, the employer usually covers a significant portion of the premiums, while employees might pay a smaller amount, often deducted directly from their paychecks. This arrangement helps mitigate the financial burden of healthcare costs for employees and facilitates access to medical services, thus promoting overall employee health and productivity.

The other options do not accurately describe employment-based health insurance. For instance, independently purchased insurance does not involve an employer and typically means individuals find and pay for their coverage on their own. Government-subsidized insurance generally pertains to programs like Medicaid or Medicare, which provide health coverage to specific populations but are not tied to employment. Lastly, insurance exclusively available to low-income individuals refers to public assistance programs rather than employment-based offerings, which are accessible to employees of a company regardless of income level.