Sunday, February 26, 2017

When insurance isn't insurance

A short exchange of text messages with my sister revealed something something obvious, or should be.

This Obamacare isn't insurance, it is health care.  How?  She wrote about the delay in getting treatment started may have been due to it being a one in a million event.  But you see, I tried to explain, it is exactly what insurance is for.

Insurance is supposed to be set up on the law of averages.  A large number of people can share the risk of an event for a small price, which the insurance company sets up the underwriting of the risk based upon probabilities.  If you are a one in a million risk, then for every million people, one person will be affected.  You can have a really small premium that could be very generous to people who are affected.   For example, if you have one million policy holders, and each was charged ten bucks a year for coverage for  chordomas, then each patient could get a multi million payout, and the insurance company could still make plenty of money.

But Obamacare isn't set up that way.  For that reason, it shouldn't be called insurance.  It is health care.

Nice to keep things in proper perspective.  Liberals have this tendency to want to bend the facts in order to fit their worldview.

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