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I think this misunderstands the point of insurance. Insurance covers rare, but high-cost situations by spreading the risk around to the entire population that's

by notJim 7y ago

I think this misunderstands the point of insurance. Insurance covers rare, but high-cost situations by spreading the risk around to the entire population that's subject to that risk. It's not necessary that the situation be a surprise. People with chronic diseases aren't subject to an emergency, but they're far more expensive to provide medical services for than otherwise healthy people because they need so much more medical care. Same with people with cancer: cancer is not an emergency in the sense you're describing, but no amount of comparison shopping is going to make cancer treatment affordable for one person. What does make it affordable is that a huge pool of people are paying for it.

LoSboccacc 7y ago
> It's not necessary that the situation be a surprise setting aside the american/healthcare market with the inflated prices for the sake of the argument, wouldn't be more cost effective, for planned expenses, to go with savings or a loan?
- notJim 7y ago
  No? Most people would struggle to save up hundreds of thousands of dollars to pay for the cancer or any chronic diseases they plan (?) to get at some point. Aside from that, you have no idea what medical conditions you're going to get, and when. Even if you can save the money, it's a massive amount of money sitting around in cash (can't invest it because you could need it any time), which would be a huge waste. And some people would save it all up and never end up needing it.