Quote:
Originally Posted by luds48
Most health insurance companies that are part of "associations" have much large provider networks for what I can tell and typically health "trusts" have lower premiums and better benefit packages because a trust is just a way of grouping people together to negotiate lower rates. If those definitions are correct I couldn't disagree more.
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A trust or an association is a group of people of like mind who band together to get insurance and do other things - think of an union group. However, some associations are formed solely for the purpose of getting insurance (think of the air breathers association whose only requirement to join is that you breath air).
If the group is large enough, they will "self insure" (that is hire an administrator to admin. the policy and pay claims on behalf of the company). With a union group or a true employer it is not a problem. Those groups collect premiums from the members and will also put in some $ themselves. If the groups claims exceed the premium (either collected from members or contributed from the company/union) the company or union will put in the rest.
However, if it is not a true group or assoc., and the claims exceed the premium, who is going to put in the extra cash?
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