I fully understand how insurance companies calculate risk. I work in the industry. Obviously if an insurer were to price out a policy for a very sick person the rate would have to be astronomical, so, that extra rate is spread over a larger pool of people and everyone pays a little bit more.
Since there are many more healthy people than sick people it will not bankrupt the insurance company it will just cause rates to go up a little. In my opinion that’s the price we pay for living in a civilized society.
The analogy with auto insurance does not work. Driving a car is a privilige and if you abuse it then it should be taken away. If you develope cancer through no fault of your own well then, your insurance company should not be able to deny you coverage just because of your misfortune.
You might work ‘in the industry’, but you do not understand how insurance is calculated.
Yes, broadening the pool will cause a greater income for the insurance companies, but the issue is calculating it. If they have no idea what their risks are, how can they calculate what the premium should be?
You are speaking based on emotion and not on a true understanding of the acturial tables and risk formulas.
Why are you here? Wouldn’t you be more comfortable at the Democrat Underground?
“Since there are many more healthy people than sick people it will not bankrupt the insurance company it will just cause rates to go up a little. In my opinion that’s the price we pay for living in a civilized society.”
You know what else is the price for living in civilization? A chicken in every pot and a car in every garage. Oh, and HDTVs in every living room, eating at restaurants every night of the week, and having decent tennis shoes. When does it stop? When we’re bankrupt, I guess.
The price of civilization has already been paid. There is a social safety net. There is no crisis. And whatever problems there may be, we need not solve them by setting the industry on a path to be nationalized.