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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHere's Why Tim Armstrong Knew About His Employees' 'Distressed Babies' (AOL)
http://www.sfgate.com/technology/businessinsider/article/Here-s-Why-Tim-Armstrong-Knew-About-His-5222916.phpHere's Why Tim Armstrong Knew About His Employees' 'Distressed Babies' (AOL)
Josh Barro
Last week, AOL CEO Tim Armstrong's chose to tell a company-wide conference call that two AOL employees had "distressed babies" requiring health care expenditures of around $1 million each which was one of the reasons he had to make 401(k) benefits less generous.
Here's one aspect of the AOL story we thought people might want a clearer explanation of: Why did Armstrong know so much about his employees' health care usage in the first place? Weren't those high costs a matter between AOL's employees and AOL's health insurer?
In fact, like most large companies, AOL is its own health insurer.
A source close to AOL senior management confirmed to Business Insider that the company self-insures for health coverage. Employees carry cards with the name of an outside insurer on them (Cigna, in AOL's case) but that company is just acting as an administrator; it sends a bill to AOL for whatever claims get paid out.
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Here's Why Tim Armstrong Knew About His Employees' 'Distressed Babies' (AOL) (Original Post)
jsr
Feb 2014
OP
JoeyT
(6,785 posts)1. In other words: He violated HIPPA. n/t
PowerToThePeople
(9,610 posts)2. bingo.
area51
(11,921 posts)3. If douchebag Tim really wanted to save money,
he'd start pushing the legislators to convert the US to single-payer.
wildeyed
(11,243 posts)4. Or reduce his 12 million dollar take home pay a bit.