[TradingPlaces]

“The wrong circumstances” would be, for example, a steep rise in costs across the board, and they are faced with the choice of eating at least some of it, or losing a lot of customers. I spend a lot more time thinking about edge cases since, well, all this. Anyway, if you look at their gross margin on benefits, it varies between 4.8% to 5.9% in the periods they report, so it’s not a constant margin to begin with.

Gas isn’t a great analogy because gas is an inelastic product in a very liquid market where everyone on the retail level locally has the same cost structure. That is not the case with benefits

[CPLX]

That's just not how their business model works. They charge a fixed per-employee fee every month. For benefits they give you a quote each year when policies renew and then you decide what you want to do.

Their health insurance rates have doubled and tripled for some customers, because our national system for health insurance is insane, and they just tell you that when the renewal comes up and you decide. I'm a customer, I've seen this first hand.

Your comment just doesn't really make sense. It's like wondering if a travel agent is going to "face the choice of eating some of the cost" when hotel rates go up or airline tickets get more expensive. The answer is no, that's just not how the pricing model works.

[TradingPlaces]

Good luck