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Multiple Impacts
Natural disasters, such as Hurricane Katrina, illustrate the risks a health plan can face. While the immediate focus around Katrina is on lives lost and property damage, a regional HMO serving Louisiana and/or Mississippi may suddenly experience several near-catastrophic, hurricane-related claims due to building collapses, burns or other accidents that highlight the need for multiple loss medical reinsurance. These combined larger claims could be especially taxing for a plan already anticipating increased utilizations due to illness and injury from the storm and its impact on a community's infrastructure and sanitation facilities. It doesn't require a hurricane, however, to trigger this kind of exposure. Here are other real-life events that could have warranted this coverage:
1999 - Amtrack train derailment near Chicago injures 100 2000 - New Jersey University fire injures 58 2001 - Seattle earthquake injures 215 2003 - Rhode Island night club fire injures 200 2004 - Sextuplets born in Ohio October 1, 2005 Copyright 2005© LRP Publications |
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