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Within the US, could you have a cooperative-style insurance scheme that pays any excess to its members? I believe these days most insurance companies farm out
by rich_sasha 2y ago
Within the US, could you have a cooperative-style insurance scheme that pays any excess to its members?
I believe these days most insurance companies farm out most of the risk to reinsurers anyway, so you could do it at a relatively small scale.
- stogot 2y agoI have a family member that recently told me they’re on a US co-op plan. I need to explore this but it sounds like what you describe?
- lesuorac 2y agoIIUC, UHC has a margin of 5.8% [1] with a denial rate of 32% [2]. I don't think you can offer insurance at the price that they do while having an honest denial rate. You may argue that you shouldn't offer insurance for a rate that doesn't cover actual incidence and I would agree but it seems to be their business model. [1]: https://www.unitedhealthgroup.com/content/dam/UHG/PDF/investors/2024/UNH-Q3-2024-Release.pdf https://www.unitedhealthgroup.com/content/dam/UHG/PDF/invest... [2]: https://news.ycombinator.com/item?id=42359122 https://news.ycombinator.com/item?id=42359122