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Right but the reason large insurers can offer good insurance is they are a much larger risk pool. I work for a Fortune 500 and my daughter has probably cost th
by wincy 7y ago
Right but the reason large insurers can offer good insurance is they are a much larger risk pool.
I work for a Fortune 500 and my daughter has probably cost the insurance $1m. No big deal rates didn’t even raise.
Before I worked for a contractor and we cost THEM a million bucks, and they had to get rid of the low deductible plan, and boost insurance rates by $50 per WEEK per employee. We single-handedly destroyed their risk pool from three months of NICU stay, making it so they could no longer offer affordable insurance. Rather than accept the new rates we got cheaper plans on the Marketplace. Unfortunately though those aren’t tax deductible but we still came out ahead.
It’d make far more sense to just have a marketplace for everyone and make the risk pool the entire US population, rather than let giant corps get good rates while small companies get devastated when an employee or their children get sick.
- baddox 7y ago> Before I worked for a contractor and we cost THEM a million bucks Was this a large group insurance plan (usually 50+ or 100+ employees depending on the state)? If it were a small group insurance plan I don't believe your utilization would increase the rates, since AFAIK all the small groups in one state/region and insurance provider are combined. If the employer was large enough to have a large group insurance plan, but still fairly small, I suppose one person's utilization could noticeably increase rates at the next plan negotiation. I believe this is why some companies that are too big for small group insurance plans utilize "professional employer organizations" to participate in a larger risk pool.
- wincy 7y agoYeah it was maybe a 50-100 person company. The new company is substantially larger.