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That's not insurance, you're basically describing a health savings account. Insurance spreads the cost of all payouts by all patients as to spread out the risk
by notfromhere 9y ago
That's not insurance, you're basically describing a health savings account.
Insurance spreads the cost of all payouts by all patients as to spread out the risk amongst every patient. Not every patient will be profitable. The goal is to have enough healthy, profitable patients to balance out the sick individuals.
- chimeracoder 9y ago> Not every patient will be profitable. No, but no individual plan is ever expected to lose money. If that's the case, you're talking about something that isn't actually insurance. You're illustrating the original point: when people talk about "health insurance", they're already talking about something that fundamentally is not insurance. If health insurance were insurance in anything but name, then increasing premiums based on expected future risk would be exactly how we would expect health insurance companies to behave.