Here’s the deal – as much as any of us may dislike or disagree with the ACA it is law and it will continue to implement. You need to understand the economics that drive this law and prepare for a changing business environment. Continue reading
All insurance depends on spreading risk across a large population of people who may not use it so we can pay the claims for those who do use it. For decades medical insurance companies have used “risk pooling” to group similar risks together so they can provide affordable coverage to their clients. In many cases a process called “Multiple Employer Trust” was used to offer medical coverage to employer groups. These were all risk spreading methods. In addition multiple plans were offered in the same employer to provide employee choice. And then the term “Exchange” came into the lexicon.