2 ms·
> I never understood why healthcare was tied to employment. +1 its unclear to me why the pricing would go down for higher number of employees? The risk profile
by maerF0x0 7y ago
> I never understood why healthcare was tied to employment.
+1 its unclear to me why the pricing would go down for higher number of employees? The risk profile is still spread across many people in the case of contractors.
- toast0 7y agoA small employer (or individual payer) is buying insurance, and the insurance company is going to need a good reserve because the maximum benefit is large relative to premiums. A large company often self-insures the healthcare cost, and is buying health plan administration. If high costs are not observed, the reserves can roll over to future years. Even if they don't self-insure, the possibility can be used to negotiate lower prices, and having data on past claims can show a less risky pool, etc.
- kgwgk 7y agoSelf-selection. https://en.wikipedia.org/wiki/Adverse_selection https://en.wikipedia.org/wiki/Adverse_selection