To be acceptable to insurance companies, what percentage of eligible employees must be enrolled under a contributory group health insurance plan?

In the context of a contributory group health insurance plan, insurance companies typically require a certain minimum percentage of eligible employees to participate in the plan for it to be considered acceptable. This requirement helps ensure that the risk pool is large enough and diverse enough to maintain financial viability and effective premium pricing for the insurance provider.

The standard percentage for eligible employee enrollment in a contributory plan is often set at 75%. This means that at least three-quarters of the eligible employees must choose to enroll in the insurance plan for it to provide a balanced risk pool. When a higher percentage of employees enroll, it indicates a collective interest in the plan, which reduces the potential for adverse selection (where only those needing insurance would enroll). As a result, the probability of unexpected claims is minimized, making the plan stable and sustainable for the insurer.

While options such as 65%, 100%, and 50% might seem feasible for certain situations or plans, they do not align with the typical industry standard for contributory group health insurance requirements. Thus, the correct answer reflects the regulatory or industry norm that balances participation and risk management effectively.