Final answer:
The statement is true; people mainly obtain health coverage through group health insurance offered by employers or by purchasing individual health insurance directly. The Affordable Care Act also plays a significant role in health coverage by mandating insurance and offering health exchange markets.
Step-by-step explanation:
The statement that the two main ways that people obtain health coverage are by paying into a group health insurance plan or buying individual health insurance is essentially true. Private insurance can indeed be categorized as employment-based insurance, commonly known as group health insurance, or as direct-purchase insurance, which individuals buy directly from a private company.
In the U.S. healthcare system, health insurance is commonly obtained through an employer, which helps solve the adverse selection problem by creating a pool of insured individuals with varying health risks. This group health insurance approach is favored because it offers a balanced risk pool to insurance companies. Alternatively, direct-purchase insurance is available through private companies or state government-sponsored health exchange markets established under the Affordable Care Act (ACA). The ACA also enacted an individual mandate, which requires all individuals to have health insurance coverage or face a penalty, effectively expanding the insurance pool to include healthier individuals.
Even with these mechanisms, some individuals still obtain health coverage from private or non-profit insurers, and the government provides support to make insurance more affordable for those with qualifying incomes. With the introduction of the ACA, a spectrum of essential health benefits and consumer protections, such as prohibiting denial of coverage for preexisting conditions, were also implemented to improve the health insurance landscape.