Health Insurance That Isn't

To cut down on spiraling health-insurance costs, David Ouellette's employer switched from Blue Cross & Blue Shield of New Hampshire to a new plan set up specially for small businesses. Ouellette, who makes a modest salary as a lab manager at Chemtan Co., a leather tanner in Exeter, N. H., barely noticed the move to the new plan, which was offered by Boston-based Harbor Medical Administrators Inc. Then, in late 1989, his wife, Karen, had twins three months early. Doctors and nurses kept the fragile infants in incubators for weeks, monitoring them around the clock. They managed to save one. The cost: $220,000.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.