4 ms·

This story makes no sense: - How could a single baby born with health problems bankrupt a big aerospace company? - A man is just as likely to have a child wit

by harryh 7y ago

This story makes no sense: - How could a single baby born with health problems bankrupt a big aerospace company? - A man is just as likely to have a child with severe health problems as a woman even though he'll never be the pregnant one.

mieseratte 7y ago
> - How could a single baby born with health problems bankrupt a big aerospace company? Lots of companies have self-funded groups, but join onto an insurance group for negotiating power. For instance, I have a plan like this and our partner-company is Cigna so I carry around a Cigna insurance card with the $FIRM plan. Looking at the paperwork, the most expensive plan is $67 per week, with an $8,500 max out- of-pocket. $FIRM has (rounding up slightly) 500 employees. So let's say 500 employees x 67 dollars x 52 weeks = 1.742.000 dollars into the insurance pool per year, so two $1.000.00 pregnancies in a year would be devastating. If the pool was low, possibly bankrupting(?) - I'm not actually sure what the failure mode is here, if Cigna has some obligation at that point... guess I have an HR question tomorrow.
- harryh 7y ago
  $67 per week is your personal out of pocket commitment. The firm is committing much more to the pool. And yes, Cigna very likely does have an obligation at some point. Most firms of your size negotiate a max per year expense for the firm and insure expenses beyond that point.
- kaitai 7y ago
  Insurance companies have reinsurance, though -- they insure themselves against low-probability but high-stakes costs. Any insurance group that would be bankrupted by a single baby is just a clown college that would certainly be wiped out by a multiple myeloma or someone who needed an immune checkpoint inhibitor... or a couple adults who are on the new Hep C treatment ($84000 for three months!).

4 ms·

This story makes no sense: - How could a single baby born with health problems bankrupt a big aerospace company? - A man is just as likely to have a child wit

by harryh 7y ago

mieseratte 7y ago
> - How could a single baby born with health problems bankrupt a big aerospace company? Lots of companies have self-funded groups, but join onto an insurance group for negotiating power. For instance, I have a plan like this and our partner-company is Cigna so I carry around a Cigna insurance card with the $FIRM plan. Looking at the paperwork, the most expensive plan is $67 per week, with an $8,500 max out- of-pocket. $FIRM has (rounding up slightly) 500 employees. So let's say 500 employees x 67 dollars x 52 weeks = 1.742.000 dollars into the insurance pool per year, so two $1.000.00 pregnancies in a year would be devastating. If the pool was low, possibly bankrupting(?) - I'm not actually sure what the failure mode is here, if Cigna has some obligation at that point... guess I have an HR question tomorrow.
- harryh 7y ago
  $67 per week is your personal out of pocket commitment. The firm is committing much more to the pool. And yes, Cigna very likely does have an obligation at some point. Most firms of your size negotiate a max per year expense for the firm and insure expenses beyond that point.
- kaitai 7y ago
  Insurance companies have reinsurance, though -- they insure themselves against low-probability but high-stakes costs. Any insurance group that would be bankrupted by a single baby is just a clown college that would certainly be wiped out by a multiple myeloma or someone who needed an immune checkpoint inhibitor... or a couple adults who are on the new Hep C treatment ($84000 for three months!).