Good idea, that just might work.
I am glad someone finally came up with a solution, because I couldn’t think of one and everyone kept attacking me thinking I was happy about the situation.
Well, the whole idea behind medical insurance is to get lots of healthy people to sign up and pay a little bit every month, and when someone needs medical care, there’s plenty of money in the pot to pay for it.
If there are few claims, the premiums can stay low. The insurer can only keep so much as profit, as the premium is based on claims.
Even if they were to keep 20%, half of that immediately goes out as taxes, then they have to pay rent, bills and payroll. They usually wind up with about 3.5 to 4%.
In the case of a guaranteed issue state (covers all with pre-existing conditions) around 1% of the sickly-insured, make up about 50% of the claims.