BizSugar.com › Employee Benefits › Are Health Insurers 'Purging' Small Businesses to Boost Profits?

Most small business owners may not even be aware of “purging,” but far too many may have been hit by the practice. Purging is where an insurance company jacks up rates, usually but not always after an employee becomes seriously ill, with the sole purpose of forcing the company to drop coverage.

In essence, the business is “purged” from the insurance company's rolls to cut costs and boost profits. It's unknown at the moment how widespread the practice is.