Which statement best describes private employer-based health insurance?

• A. Employer pays portion; individual pays portion; tied to employment; no coverage choice; prior authorization for many procedures
• B. Government funded; universal coverage
• C. Available only to retirees
• D. No prior authorization required

Answer: (A)

Private employer-based health insurance is a benefit tied to your current job, with costs shared between the employer and the employee. The employer typically pays a portion of the premium while the employee covers the rest through payroll deductions. Coverage is linked to ongoing employment, so leaving the job usually ends the plan and you’d need to enroll in another plan or use continuation options like COBRA. The plan options are determined by the employer, so the employee often has limited personal choice among plans. Many employer-based plans also use prior authorization for many procedures or services as a way to manage costs. Choices describing government-funded universal coverage, plans available only to retirees, or plans with no prior authorization don’t fit this typical setup.