The Pareto Principle, otherwise known as the 80/20 rule, is often used in health insurance discussions;  80% of claims are generated by 20% of the population. The principle holds true in almost every case regardless of employer size, demographics or geographic location.

While this article from the Washington Post takes the concept even further with eye opening statistics (and opinions), the over arching theme is that most employees and their families are over-insured. Over-insurance is difficult for most of us to handle-we are all conditioned to believe we need ‘first dollar’ coverage—never more than a copay or a small deductible.  Such conditioning has resulted in astronomical health insurance increases. Regardless of who foots the bill, employer or employee, everyone loses.