36 ms·
Catastrophic health insurance makes no sense as an insurance product since the probability of catastrophic health event costing hundreds of thousands of dollars
by lotsofpulp 2y ago
Catastrophic health insurance makes no sense as an insurance product since the probability of catastrophic health event costing hundreds of thousands of dollars is so high as one ages. Heart disease and cancer is a given, and that costs hundreds of thousands of dollars to treat, and premature babies are in the millions.
US health insurance is a combination healthcare purchasing agent/second opinion/fraud detection/insurance/tax collector.
A large part of a premium is a tax due to the maximum age rating factor that limits the prices old people pay to 3x or less what young people pay. It is also a tax because the insurer cannot underwrite the insureds, except on the basis of age, tobacco use, and location.
- eru 2y ago> Catastrophic health insurance makes no sense as an insurance product since the probability of catastrophic health event costing hundreds of thousands of dollars is so high as one ages. Then no health insurance would make sense? Well, as you suggest, the regulations that cap the premiums for old people at 3x those of young people seem to blame?
- efitz 2y agoInsurance companies sold such plans for decades; the price goes up as you get older (==riskier from the pov of the insurer). Just like life insurance. At some point the consumer makes a decision that the cost of insurance doesn’t justify the benefit.