What Is Employer Sponsored Health Insurance?

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   Marlin McKelvy

   President, Consumer Directed Benefit Solutions, Memphis, Tennessee

   Employer sponsored health insurance is a group health insurance policy put in place by an employer for the benefit of their employees.  Under this arrangement the employer is the actual insurance policy holder (employees receive a certificate of coverage under the group plan) and is required to make a financial contribution towards the cost of the coverage and to maintain a certain minimum level of enrollment among their workforce in order to keep the group policy in force.  Employer sponsored health insurance is the most common way that Americans receive their health insurance coverage.

   Answered on May 1, 2014

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