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Superstore - Health Fund

by Clair Smith

In these clips from the comedy Superstore, Cloud 9 employees try to create a health fund to pay for medical expenses within their group. While they only mention the word insurance with respect to the poor coverage they get through their employer, what they are attempting to create is a group health insurance plan. They are attempting to pool their risk by all chipping in up front and then covering actual medical expenses. But within four hours they find that they are overextended by tens of thousands of dollars. At this point their simple plan becomes increasingly complex, as they try to separate people into high and low risk groups with differentiated premiums. They also confront traditional insurance topics like adverse selection, where high risk people are most eager to get the insurance coverage. There is also evidence of moral hazard, where people change their behavior - or at least their interest in seeing a doctor - due to insurance coverage. Further complex adjustments to the plan lead an exasperated employee to declare "Guys, we're making it too difficult. We just gotta simplify. Cover everything, exclude no one, and make it affordable." This clip does a great job of showing just how unrealistic such a lofty goal is.

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Superstore - Health Fund

In this clip from the show Superstore, Cloud Nine employees wrestle with creating their own "health fund" to cover medical expenses. They unwittingly confront issues of risk-pooling, adverse selection, and moral hazard.

from Superstore (2017)
Creator: Justin Spitzer
Distributor: NBC
Posted by Clair Smith