Final answer:
High-risk pool insurance is marketed to small business owners to provide coverage for employees, especially those with preexisting conditions or deemed uninsurable. This type of insurance helps small businesses offer competitive benefits despite the risks involved.
Step-by-step explanation:
The type of insurance that is considered risky yet is marketed to small business owners as a way to provide coverage to employees is high-risk pool insurance. High-risk pool insurance is a type of health insurance designed to cover individuals who have preexisting health conditions or who have been deemed uninsurable on the individual insurance market due to their high risk. It is a solution for small business owners who may have difficulty providing coverage through other means, helping them offer insurance benefits to attract and retain employees.
It is important to note that the Affordable Care Act aimed to address issues of adverse selection and ensure that more Americans, including those with preexisting conditions, had access to health insurance.