MINIMUM PREMIUM HEALTH PLANS: INSURED NON-INSURANCE: COMMENT.

This article comments on the article "Minimum Premium Health Plans: Insured Non-Insurance," by Robert D. Eilers, featured in the March 1969 issue of the "Journal of Risk and Insurance." Under the Mini-Met plan, the cash flow and the financial position of both the insurer and the employer are the same. Furthermore, the risk undertaken both by the employer and by the insurer is the same under the arrangement and the conventional group insurance plan. The author argues that under the circumstances, it is difficult to understand how one can be considered insurance and hence subject to premium tax, and the other non-insurance and free of premium tax.