Name:   GoneFishin - Subject:   Insurance Pools Date:   4/23/2016 1:37:43 PM

In theory, insurance pools for health insurance would appear to be a viable solution to reducing insurance costs for members of the pool. 

As an example, let us establish a pool for Alabama Public Schools Employees. By establishing the pool, we are offering coverage to all the schools in AL and the large number of participnts will resduce the insurance premiums.

Rates are established and each school is offered the opporunity to enroll. The business manager of the school district will compare rates to their current plan. Only those disricts that can save money will join. Those that do not join typically have lower rates due to good claim experience.

Pools attract those who have higher claims and rates continue to rise in future years as schools with good claim experience would find they could obtain lower rates outside the pool. 

For a pool to work, all school districts would have to join the pool. Otherwise, the selecton against the insurance company would destroy the pool within a couple of years.