Quote:
Originally Posted by AmeliaG
Catastrophic insurance only costs a little less than regular insurance. My mother has had multiple cancer surgeries. She has great insurance. She appreciated the peace of mind, but even with multiple six figure surgeries, the healthcare costs were a lot less than what she paid those insurance companies over a lifetime and don't forget there is usually some sort of co-pay.
The math simply does not work for the customer with for-profit insurance. It *can't* work because the house has to win.
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Health insurance works similar to car insurance (or any insurance for that matter), profitability can't be ensured on a case by case basis, but it works / makes money on a larger scale because of the people who pay in not everyone suffers a catostrophic illness. Most people don't.
Also insurance companies form relationships with doctors, pharmeceuitcal companies, hospitals, etc so the rate the insurance company actually pays out is less than what you or I would be able to negotiate.
The big problem with health insurance companies is they put so much stress on profitability within their companies that they start to cut corners to increase their bottom line. When someone gets diagnosed with a serious illness they go over paperwork with a fine tooth comb and cancel someone's policy who's just been diagnosed with cancer because they forgot to disclose they had migraines. Things like this are why we need regulation.
As far as what you pay in vs what you get out, let's go middle of the road and say someone pays $350 a month for health insurance. Over 50 years paying in at that rate that's only $210k. Get seriously ill or wind up having to stay a few days in the hospital for any reason and that money goes out fast. Several surgeries your definitely out over that amount.
It's impossible to see the future and know if you will have a serious health issue or not. You can take excellent care of yourself your entire life, eat healthy, go to the gym, etc and something could still strike you down. Just like driving your car, no matter how well you drive you can still get t-boned by someone else. Just like a bad car accident can devistate someone who is uninsured financially so can a serious illness.