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Today's Show » Confusion Over Health Insurance

5 years, 8 months ago
I listen to people talk about health insurance, and it's obvious to me that most people don't understand how health insurance (or insurance in general) works. I've worked in health insurance for 18 years, and I can provide some insight. Insurance works with a risk pool of people. The more people with a lower risk in the pool, the cheaper the rate. In other words, for health insurance, the healthy subsidize the sick. For auto insurance, the safe subsidize the accident prone, and for life insurance, the living subsidize the dead. To this end, there are reasons why some pre-existing conditions, trial drugs, and untested procedures are excluded or denied. The cost for these things is beyond what can be sustained by the risk pool. If one individual is using millions of dollars within the risk pool, the cost must be offset by everyone else in the pool, resulting in an increase in premiums. As an aside, I also object to a government run system based on privacy issues. Most people don't understand how much information is really kept by an insurance company (both for liability and fraud reasons). For example, if you break your arm and have it set, that claim needs to be kept for 7 years at which point it can be destroyed. However, if you have your appendix taken out, that claim needs to be kept forever, because you can break your arm again, but you can never have your appendix taken out more than once. This information needs to be retained in an effort to reduce fraud (which, by the way, is $4 billion a year industry). In summary, health insurers have spent decades refining the procedures and processes that help to reduce costs. Why do some people think that the Federal government will be able to run a health insurance business when they have enough trouble doing what they're supposed to do -- pass legislation to protect the rights of its citizens?
5 years, 8 months ago
Devious, you do realise what you have just written would cause a liberal brain to over heat!
5 years, 8 months ago
No, Bard. Didn't you listen to Pelosi? Insurance companies are great big evil lying meanie heads.

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