[grania]

You make an excellent point. A lot of responsible people sign on to practical policies when they statistically probably won't need them so they'll be in place when they're older. So, anyone who has paid for catastrophic-only insurance with a high deductible might pay in for decades until (if ever) they need it. If those policies are cancelled, it seems that they should get the money back, since buying those policies involved the trust that the insurance company would be there when you needed it.

Isn't that what insurance companies keep selling in their ads? Trust.

[St_Thomas_Aquinas]

Rand Paul has the right idea about health insurance. It should be sold like life insurance. People should buy 40 year policies at age 21, which would last until Medicare kicks in.

Obviously, writing such policies would be incredibly complex, but that’s what actuaries are for.

[ROCKLOBSTER]

If those policies are cancelled, it seems that they should get the money back, since buying those policies involved the trust that the insurance company would be there when you needed it.

No, it's a pay as you go proposition. The companies would probably be just fine if the RATs hadn't made it impossible to continue operations.

The carriers pay out 70-80% of their premiums as claims. They pay half of the remainder as taxes. Your suggestion would just cut their throats.