A Risk Management Strategy Supported By The American Taxpayer
By Bill Rusteberg
The Compassionate Care Plan™ is a risk management strategy for self-funded employer groups providing an effective method of transferring high risk plan members to the individual health insurance market.
I always wondered how it was John (not his real name) seemed to be doing quite well working as a sales rep. for a rental PPO network. His wife didn’t work, he lived in an expensive neighborhood in a major Texas city, and was often vacationing at warm sunny beach resorts with plenty of umbrella drinks at hand. Life was good to John.
In February 2005, insurance broker Wesley Chesson submitted an application to Plaintiff Columbus Life Insurance Company (“Columbus Life”) for a life insurance policy on behalf of Dr. Earl Trevathan, Jr. The application, which was purportedly executed by Dr. Trevathan in Greenville, North Carolina, sought a $1 million policy with a $1 million rider, naming Dr. Trevathan as the initial owner and Dr. Trevathan’s estate as the initial beneficiary.