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Turn it around- perhaps the low risk individuals find subsidizing the high risk individuals equally repellent. Wellness programs allow those individuals to reco
by gascan 8y ago
Turn it around- perhaps the low risk individuals find subsidizing the high risk individuals equally repellent. Wellness programs allow those individuals to recover some of their premiums.
- mplewis 8y agoLow-risk individuals subsidizing high-risk individuals? We just call that "insurance."
- baddox 8y agoThat’s not a trait inherent to insurance. Premiums can be adjusted based on risk so that everyone “subsidizes” everyone else by the same amount on average.
- emodendroket 8y agoIn this case the people who most need insurance cannot afford it.
- dv_dt 8y agoAnd after all the accounting of minuitae is done, after we pay for layers of actuaries, account administrators, and executives that rebalance all the groups and variable, we end up paying a risk and profit optimized system price that is, on average, double other modern nations bills. And for the privilege of paying more than any other modern nation, we die earlier, exclude the poorest, and subject even those with that optimized insurance to bankruptcy should they need to exercise their benefit in a major medical episode.
- gascan 8y agoIt tends to start out that way, yes. But eventually as you can better model risk, you can better customize premiums to each individual, until you eventually approach charging each individual their expected risk (loss * probability) plus overhead. Which, I believe, is how insurance is ideally supposed to behave according to economists.
- emodendroket 8y agoYes, other people conceivably might have values diametrically opposed to mine. So?