Here's Why Tim Armstrong Knew About His Employees' 'Distressed Babies' (AOL)

[jsr]

http://www.sfgate.com/technology/businessinsider/article/Here-s-Why-Tim-Armstrong-Knew-About-His-5222916.php

Here'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.

[JoeyT]

1. In other words: He violated HIPPA. n/t

[PowerToThePeople]

2. bingo.

[area51]

3. If douchebag Tim really wanted to save money,

he'd start pushing the legislators to convert the US to single-payer.

[wildeyed]

4. Or reduce his 12 million dollar take home pay a bit.