Does an insurance model work for healthcare?

Discussion in 'Healthcare/Insurance/Govt Healthcare' started by Polk, Mar 27, 2011.

  1. Polk
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    Polk Classic

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    I have made reference to this notion before, but never really got a response, so here it goes...

    I would postulate health insurance is fundamentally different from all other forms of insurance. Car, homeowners, and term life insurance all have something in common. They protect against a risk. They protect against the possibility of a negative outcome. However, health insurance is not like this. It can't protect against the possibility of a negative outcome because everyone will fall ill at some point. Not everyone will crash their car, having their house burn down, or die within the next ten years. Everyone will fall ill at some point. Everyone will develop heart disease, cancer, diabetes, or hypertension. Disease and death are part of the human condition. This is why the insurance model for the provision of health care services is ultimately unstable.
     
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  2. Toronado3800
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    Toronado3800 VIP Member

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    In some ways it is different. I may suffer a heart attack and die while removing invasive honeysuckle from my yard without costing my insurance comoany anything. Then again I may catch cancer and linger on for a decade of expensive treatment.

    Just like auto insurance companies my health insurance company hires actuaries and others to figure out that risk and charge accordingly.

    Different than automobiles which keep becoming safer this cheaper healthcare costs keep going up. Darn it, I want that new $100,000 sometimes it works chemo treatment which did not even exist in my grand dad's time for example.

    Then we have the problem that unlike in Biblical times we dont lime seeing the sick and diseased on the street waiting dor the son of god to heal them. Hospitals in America more or less must treat the poor.

    So I dunno.
     
  3. percysunshine
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    percysunshine Gold Member

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    Every house will eventually get old, decay, and collapse.

    Every car will eventually get old, decay, and stop running.

    The only question is when.
     
  4. auditor0007
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    auditor0007 Gold Member

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    If auto insurance was like health insurance, policies would cover oil changes, new tires, and every single repair necessary over the lifetime of the vehicle. Same for home owners insurance; it would cover all remodeling costs, as well as paying all your utility bills. Health insurance is only insurance when something catastrophic happens. Otherwise it is just a means to pay your medical bills through a third party. Health insurance should not cover every single doctor's visit or once a year lab work. It should only cover catastrophic illness. The rest should be paid for out of pocket. The government could provide further funding for those who truly cannot afford even the most basic care.
     
  5. RDD_1210
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    RDD_1210 Forms his own opinions

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    You have car insurance that will pay for maintenance, oil changes, brake pads and engine work?

    You have home owners insurance that will put in new carpet and paint your walls?

    The only question is if you're dumb or being difficult just for the sake of it.
     
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  6. Skull Pilot
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    Skull Pilot Platinum Member

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    Don't confuse warranties with insurance

    Only after they are damaged by a cause covered by your homeowners' policy
     
  7. RDD_1210
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    RDD_1210 Forms his own opinions

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    I'm not confusing anything. We're talking about insurance. What he described has nothing to do with insurance. Like you said...warranties. Hence why he is either dumb or difficult.
     
  8. Toronado3800
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    Toronado3800 VIP Member

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    Good points I did not think of about the maintenance issues.

    Feels like I have seen "emergency only" healthcare policies.....was it a Cobra deal about a decade back. Us young folk could use that.

    Trouble is as WE get older WE usually need more and more maintenance type things. Think about them cholesterol drugs I have even been on and off, not to mention the decades of blood pressure or diabetes medication some of my elders are on. If health insurance did not cover it....well the positive would be maybe we would eat better. Then again Grandma would have died a pauper w/o insurance covering some pills. In the big sense that would be better, redistributing wealth from a stationary old lady to a company that is producing SOMETHING, even if it is only a pill.

    hmmm....in my 20's I would have played the odds and only used catastrophic coverage. Now I can see the near future where I may need pills to raise my good cholesterol so I would swap my insurance to a better plan if both types were offered. Oh well.
     
  9. The Rabbi
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    The Rabbi Diamond Member

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    I don't know about him, but you're both. A warranty is a form of insurance.

    Back to topic: Health insurance is exactly like every other form of insurance. It is a wager based on the likelihood of any given occurrence and the cost that occurrence will involve. Plenty of people who never filed a health claim died in 9/11. Also plenty of policies never have a claim made on them before they are terminated by the insured.
     
  10. RDD_1210
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    Car insurance is not a car warranty. Home insurance is not a home warranty.
     

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