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Jim Costa

Dear Jim: Regarding Health Care Law settlement.

Why so little money? $10 million? That's no where near enough for over 500 people.


Response:

I don't know but if I had to guess . . . .


Perhaps the defendants realized they could be awarded, by a jury, as the maximum amount, $1 less than what it would take to make the plaintiff insolvent.


And perhaps the defendants realized they were setting a precedent for woke employers across the U.S. to have to pay for their misdeeds.


And perhaps they did not wish to destroy the majority of the U.S. businesses.


P.S. Realize that commercial insurance works in reverse. If the company does something really stupid and expensive, future insurance company annual rates go up accordingly so that the insurance company still makes a profit. If the stupid company changes carriers the new insurance company makes all the profits from their stupidity.

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