In the context of employee health insurance, what does "lasering" refer to?

Lasering in the context of employee health insurance specifically refers to the practice where insurance providers identify and exclude high-cost employees from group coverage or assign them higher premiums. Insurers analyze the risk of claims based on an individual's health history, and if certain employees are deemed to have a higher risk or forecasted medical expenses, they may be "lasered" out from the standard coverage pool.

This approach allows the insurance company to manage its financial risk by avoiding or adjusting for high-cost individuals instead of absorbing those risks within the group as a whole. This practice can lead to higher costs for the excluded individuals, who may need to seek alternative coverage at higher rates, or find themselves without health insurance altogether.

In contrast, other options like adding more coverage options or reducing overall premiums do not align with the concept of lasering. Specifically, increasing coverage for all employees would not address the risk management strategy involving selectively excluding those who represent a greater financial risk to the insurer.