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Employer-Sponsored Health Insurance

What is employer-sponsored health insurance?

Employer-sponsored health insurance is health insurance that employers offer to employees and their families. It is the most common way for Americans to receive health insurance in the U.S.

The employer-sponsored health insurance plan is selected and purchased by the employer, then offered to eligible employees, with the employer often sharing the cost of the premium. This type of insurance may also be called a group plan.

The Affordable Care Act requires businesses with more than 50 full-time employees to offer their employees health insurance plans. Companies with fewer than 50 full-time employees are not required to provide a healthcare plan, though they can opt to.

How does employer-sponsored health insurance improve healthcare?

By offering health insurance, often at a discounted rate, employed individuals can access more affordable health insurance for themselves and their families.

Additionally, obtaining insurance through an employer eliminates the hassle of searching for and choosing from many different insurance options.

Many group health insurance plans also offer access to specialty services such as mental health treatments and chiropractic services, which are generally not included in cheaper individual plans, offering more support for managing chronic conditions.