Final answer:
Employer group health plan coverage is a type of employment-based insurance required by the Employer mandate for companies with more than 50 employees. This arrangement assists in mixing individuals with different health risks together, making it feasible for insurers to offer coverage and reducing the risks associated with adverse selection.
Step-by-step explanation:
In the U.S., a specific type of Medicare plan that is only available through employer groups is known as employer group health plan coverage. This is a form of employment-based insurance, where coverage is offered to employees, in full or in part, by an employer or union.
Such plans are beneficial to insurance companies as they mingle individuals with varying health risks, thus balancing the pool of insured individuals and reducing the fear of adverse selection, where only high-risk individuals are drawn to the insurance provider.
Under the Employer mandate, companies with more than 50 employees are required to offer health insurance, thereby contributing to the availability of employment-based health insurance plans.
While some plans might resemble Medicare Plan A or Plan B in their structure, employment-based plans comprise a separate category that combines private insurance with government regulations, such as those imposed by the Affordable Care Act, to ensure a broader coverage among the workforce.