You would think that. But most decent sized companies self insure. That means they figure out how much to hold in savings to cover potential costs. They probably pay someone for that number. The premium is just to pay the insurance company to manage billing. It is basically an administrative fee. That puts them in the position that employers will choose the insurance company that cost them the least, mainly by denying claims. It’s a system designed to extract as much money as possible from the people and pass it on to the largest shareholders (the board of directors).
You would think that. But most decent sized companies self insure. That means they figure out how much to hold in savings to cover potential costs. They probably pay someone for that number. The premium is just to pay the insurance company to manage billing. It is basically an administrative fee. That puts them in the position that employers will choose the insurance company that cost them the least, mainly by denying claims. It’s a system designed to extract as much money as possible from the people and pass it on to the largest shareholders (the board of directors).