Insurance is supposed to be for rare and expensive occurances. Fires (in most places), windstorms, car accidents, etc. It's essentially a bank account that a

Insurance is supposed to be for rare and expensive occurances. Fires (in most places), windstorms, car accidents, etc. It's essentially a bank account that a large number of people put money into and only a few people ever withdraw from. So yes, you are correct that it doesn't work to have fire insurance in fire prone areas, or to cover medical care for people that are chronically sick. It's not that insurance companies are evil, it just doesn't fit the insurance model. A different solution is needed. One that we could come up with if we had some freedom to experiment with. Health insurance today is really a collective bargaining organization. You join the UHC club and UHC negotiatates rates with medical providers on club members behalf. Except it doesn't even work very well in that model because it's not run like a club with members having any input really. You also can't easily leave one club if you are unhappy and join another club, and your employer and the government are paying more of the money into the club than you are.