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Couple of questions: 1. Who pays for the insurance? 2. Why is it called insurance?



It's the public health insurance system.

It's paid for by for every employee, with a ~50%/50% split between employer and employee, with the premium depending on gross income only.


> Why is it called insurance?

You actually want insurance for this because you don't want, for example, small businesses avoiding fertile women because they "already have too many pregnancies right now". If all the employees had kids simultaneously (an irrelevant random event), it shouldn't cause a bankruptcy.

In practice, people aren't typically so fungible, but the insurance at least hedges the salary portion of the risk.




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