Minimum participation standards exist for group health insurance plans in order to?

Minimum participation standards are crucial in group health insurance plans primarily to prevent adverse selection. Adverse selection occurs when there's an imbalance in the enrollment of higher-risk individuals over lower-risk individuals in insurance plans. This situation can lead to increased costs for the insurer, as the pool of insured individuals becomes disproportionately populated with those who are more likely to require medical care.

By implementing minimum participation standards, insurers ensure that a sufficient number of eligible employees enroll in the health plan. This helps create a more balanced risk pool, where both healthy and less healthy individuals are covered. When a diverse group participates, it mitigates the likelihood of higher claims that could destabilize the insurance plan's pricing.

The other options reflect outcomes that may indirectly relate to participation but do not directly address the core aim of minimum participation standards. For instance, increasing employer contributions might help attract more participants, but it isn't the primary goal of setting minimum participation levels. Similarly, while encouraging employee participation is beneficial, it is not the pivotal reason for these standards. Limiting coverage options does not relate to participation minimums but rather to the types of benefits offered by the plan.