Provide additional insights or alternative perspectives to this post. As the employee benefits manager of a mid-sized construction company, it is essential to balance the obligations of the employer and the government while providing equitable and effective health insurance coverage. Employers are obligated under the Affordable Care Act (ACA) to offer affordable, minimum essential coverage to full-time employees or face penalties. This includes ensuring that all employee populations, including those with chronic illnesses like diabetes, have access to care that supports their health needs. The government plays a role in regulating these employer mandates and providing safety-net programs like Medicaid for those who may not be covered (Sommers et al., 2017). Moral hazard and adverse selection significantly affect insurance coverage. Moral hazard occurs when insured individuals may overutilize healthcare services because they do not bear the full cost. Conversely, adverse selection arises when those with higher health risks, such as employees with chronic diabetes, are more likely to enroll in comprehensive plans, potentially driving up premiums and destabilizing the risk pool (Pauly & Herring, 2021). To mitigate these issues, a balanced plan design that includes cost-sharing measures like co-pays and deductibles, wellness incentives, and preventive care is crucial. Given the