Which term describes a contract held by an employer to provide health coverage to employees?

The term that describes a contract held by an employer to provide health coverage to employees is Group Health Insurance. This type of insurance is specifically designed to offer health benefits to a group of individuals, typically employees of a company. Employers often negotiate rates with insurance carriers to provide comprehensive coverage as part of an employee benefits package, making it more affordable for employees than individual plans.

Group health insurance operates under the principle of pooling risk among a larger group, which helps to stabilize costs and make healthcare more accessible for employees. This model encourages preventive care and regular medical check-ups, benefiting not only the employees but also the employer by potentially reducing absenteeism and increasing productivity.

Individual health insurance, on the other hand, is purchased by an individual for personal coverage and does not involve employer contributions. Family health insurance refers more to policies that cover an entire family unit, rather than being employer-sponsored. Comprehensive health insurance often describes a plan that includes a broad range of coverage options but does not specify whether it is for individuals or groups. Thus, Group Health Insurance is the most accurate term for coverage provided through an employer for their employees.