Final answer:
Direct-purchase insurance is a consumer-driven health plan set up by individuals, not employers, to buy health insurance directly from private companies.
Step-by-step explanation:
The type of consumer-driven health plan funding option set up by individuals rather than employers is known as direct-purchase insurance. This is a private healthcare option where an individual buys health insurance directly from a private company. Unlike employment-based insurance, which is provided by an employer or union, direct-purchase insurance offers individuals who do not have access to employer-sponsored plans or government programs like Medicare the ability to secure their own coverage. The individual mandate was a policy designed to reduce the issue of adverse selection in these markets, encouraging even low-risk individuals to purchase health insurance, making policies more affordable for everyone.