3 ms·
Because it takes advantage of risk. OP's gamble pays off if he never has an emergency, but if he ever pays more than 20k on doctors visits he's fucked. Granted
by TheAlpacalypse 7y ago
Because it takes advantage of risk. OP's gamble pays off if he never has an emergency, but if he ever pays more than 20k on doctors visits he's fucked.
Granted, that doesn't often happen. But it's a risk that most people can't afford.
- shoo 7y ago> but if he ever pays more than 20k on doctors visits he's fucked. I agree with the general point that there's more risk, but it doesn't logically follow that if you pay more than 20k in a given year you are ruined, compared to if you'd taken the insurance policy. Suppose you were paying 20k / year minimum for "insurance", needed some healthcare, and ended up paying 25k = 20k for the cost of the "insurance" and another 5k out of pocket that wasn't covered. Does that mean you're ruined even if you do take insurance? To make a better argument we'd need to understand how much wealth & income & expenses someone has, and if they're able to set aside spare cash (perhaps in an investment account) that's saved in the good years by not paying for insurance, that can be used to cover or partially cover expenses in the years where healthcare expenses are high.