Final answer:
Most people do obtain health insurance through group plans provided by employers, which helps to mitigate the problem of adverse selection in the insurance market. The employer mandate under the Affordable Care Act enforces this for companies with more than 50 employees, but many remain uninsured particularly from small companies or lower-paid positions.
Step-by-step explanation:
The statement is true that most people obtain health insurance through group plans offered by employers. In the U.S., the practice of providing health insurance through employers is a key method to counter the challenge of adverse selection.
Adverse selection refers to the tendency for high-risk individuals to be more likely to purchase health insurance, which can result in higher costs for insurers. By offering group plans, insurers can create a pooled risk among employees, both high and low risk, making it more viable to offer coverage.
This method is in line with the employer mandate of the Patient Protection and Affordable Care Act, which requires all employers with more than 50 employees to provide health insurance. However, it is important to note that many small companies might not offer health insurance, and many lower-paying jobs also do not include health insurance benefits.
In addition to employer-provided plans, individuals do have the option to buy direct purchase insurance from a private company or through state government-sponsored health exchange markets established under The Affordable Care Act. Despite the available options, millions of Americans remain uninsured, even with government programs targeting the elderly and people experiencing poverty.