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Don Levit
11/17/2008 01:47 PM
Brian:
The 55% figure does sound startling, but I have seen figures like it many times over the years.
Larger employers tend to self-fund their benefits (those of 500 or more employees).
And, as I recall, they employ half or so of the American workforce.
If large employers realized the advantages of self insuring, what does that tell you of the value that health insurers bring?
You don't need pools of thousands of people to make the large numbers work in your favor.
Similar economics await small employers in the same line of business that form VEBAs.
Don Levit
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