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> People don't treat it as insurance against catastrophic events so much as a subscription for ongoing care _People_ don't treat it this way, it IS this way.
by FireBeyond 2y ago
> People don't treat it as insurance against catastrophic events so much as a subscription for ongoing care
_People_ don't treat it this way, it IS this way.
Health insurance resembles insurance in almost none of the important ways.
Picture health insurance models laid on top of your car:
Imagine your car gets totaled. Your insurer says, "Hey, we're going to pay out $25K for your vehicle. So you have a $1,000 deductible, so that's $24,000, and then your copay for a total loss is $2,000, so that brings us down to $22,000. For total losses, your coinsurance as your contribution for your vehicle coverage is 20%, which is $5,000, so here's a check for $17,000. But that's only if you're buying a Hyundai, otherwise the vehicle is out of network and you'll get a check for $8,500 instead."
(And to be clear, I'm not saying auto insurance is without its own issues and sketchiness, just that it at least conforms to actual "insurance").
- Ajedi32 2y agoI think a better analogy to my point would be if making insurance claims for oil changes was considered a normal and accepted practice. But you're right, that's part of the reason we end up with things like copays. My 3rd point above is also responsible for a lot of this.
- mlsu 2y agoAnd your insurance works with a mechanic: How much is this oil change going to cost? -- Can't tell ya. you have insurance though, right? I have Geico. The oil change was $25 last year. Let's just do it, you're telling me it's necessary. -- Great! It'll be done in about 25 minutes. ... -- That'll be $1895.00, I'll send you the bill. But if you take care of it right here, I'll lower the price to $425.00. WHAT!? 425 for an oil change? What a RIP! $125 is all you're getting from me. -- Pleased doing business with you. See you again next year!