[Fredslist] Volume Discounts and Regulation

[John Seiffer]

Gotham,
I'm on a working group for the Connecticut legislature to make health
insurance more accessible to small businesses. One of the ideas is to make
sure that any plan that an insurance company writes would be available to
any company regardless of size at the same price. This would apply to
individuals also. In effect it does away with volume discounts and forces
the insurance companies to price risk at the largest pool size possible (a
pool of everyone).

The reason I'm writing is I've been asked to see if this prohibition of
volume discounts exists in any other industry. So far I've heard about
liquor distributors who (in CT at least) have to charge the same price for
a case of booze to a small Mom & Pop as they do to a gigantic superstore.
Do any of you know of any other examples? They can be in any industry or
any state.
--
John Seiffer
business advisor
www.betterCEO.com
www.blog.betterCEO.com
helping business owners become better CEOs

203-775-6676 | john at betterceo.com
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