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> Um, isn't that literally the function of all insurance? It used to be about spreading risk. Now, I'm not so sure. The reason the ACA exists is that instead o
by lowmagnet 13y ago
> Um, isn't that literally the function of all insurance?
It used to be about spreading risk. Now, I'm not so sure. The reason the ACA exists is that instead of spreading risk into pools, insurance companies have been denying coverage to reduce risk. This seems like the opposite of what they once were.
- hga 13y agoThe problem is that most medical insurance isn't really insurance as it's otherwise known. If you know someone has a preexisting condition that is (statistically) going to cost more than the maximum premiums you can charge, then cost shifting of some sort must occur. And it becomes a healthcare + insurance policy, the latter protecting against the true risks, like an unrelated auto accident or illness. I.e. the now outlawed high deductible "major medical" plans that covered catastrophic costs but expected you to pay out of pocket for the rest. Which of course is another reason healthcare has gotten so expensive and opaque, when a third party pays most everything. Your eyes may go wide at the total 6 figure cost of a major procedure, but since you're only paying a relatively small copay....