Your example's math seems wrong: the $10,000 maximum coverage could be hit by multiple people, so I'd be liable for potentially $100 x 100 in a given month. Mo

Your example's math seems wrong: the $10,000 maximum coverage could be hit by multiple people, so I'd be liable for potentially $100 x 100 in a given month. More broadly, health insurance brings up the problem of asymmetric information. If I already know (or suspect) I have some illness, I would join this group just before I go in for expensive care, exploiting the risk-bearers. Some ways to avoid this problem: phase in benefits, force full medical disclosure to you, be able to detect fraud. One possible benefit: if geographically organized, the community could negotiate bulk discounts from local hospitals and doctors. The business could make this mostly automatic -- grow your community, keep your community healthy => get better rates at the local docs.