Insurance for dummies

As President Trump soldiers on towards repealing the “A””C”A, dragging the GOP along with him not quite kicking and screaming but definitely reluctantly, Barrycare’s entitled defenders are once again shrieking like infants about how wonderful it is and how well it’s working even though its own defenders and proponents know it’s broken and at the very least needs a major overhaul.  Those of us living in reality know it’s beyond repair ab initio, but that’s already been settled.  They cry about how it’s brought about higher levels of insured citizens and even if that is true (which is not a point I concede), bragging about increasing the number of insured people when you made it illegal to not be insured is really not a point in your favor.

Of course these people insist that banning abortion would not reduce the number of abortions, which is flatly wrong.  Movin’ on.

They also liked to cry about how insurance before was “junk” and “didn’t cover everything” and how the insurance companies would drop people or raise their rates constantly.  Well yeah retard, many people chose to just pay for catastrophic expense insurance and pay out of pocket when they went to the clinic for strep throat, and the rates went up because every year the regulations on the health care industry multiplied and Medicare abuse just spiraled out of control, which sent prices careening towards infinity.  Prices go up to compensate for this or policies had to be invalidated because they weren’t compatible with new regulations–sounds like your government at work to me.

As near as I can tell, the only argument these people have and the foundation they built this whole debacle on is the pre-existing condition point.  While it makes some sense to try to do something for people with pre-existing conditions, once you have a condition, it is no longer insurance.  This goes to a fundamental misunderstanding of both what insurance is and what the purpose of businesses in general is.  To the left and the entitlement culture, the purpose of any business is to give people products and provide jobs.  That’s not it at all.  The purpose of a business is to make money for its owners.  For an insurance company, that business is essentially a form of legal gambling.  The insurance company would look at the customer’s situation concerning whatever he wanted to insure, would calculate the risk factors and decide what it would be worth to them to bet that this person would not get critically ill or burn his house down or get in a car wreck, and would offer a policy accordingly.  The customer then chose whether to accept that bet or not.  Over time, due largely to things like car loans and mortgages, insurance became more of a requirement than an option, but still, competition in the market helped to hold prices down.

But you can’t buy insurance once your car is in the ditch or your house is engulfed in flames.  At that point it’s not insurance anymore because there’s no bet.  Even if you could buy a policy at that juncture, no reasonable insurance company would sell one for less than the amount they expect to pay out because they already know that’s what you’re going to be claiming, and at the end of the day, they’re a business and they’re going to charge enough so they can make a profit and afford to eat at the end of the day.  This is what makes pre-existing condition insurance so expensive–you’re asking the insurance company to “insure” you against something that has already happened.  And despite the delusions of morons and leftists, insurance companies do not exist to pay for your health care.  They do not have this big giant bin o’ money like Scrooge McDuck that they go swimming in.  They are, essentially, a casino where you bet against something you don’t want to see happen.

In other words, you cannot insure against something that has already happened.  There is no way for that to be economically feasible on either end.  That is like asking someone to agree to pay a bill for $500 if you pay them $50.  Nobody’s going to do that, not if they intend to stay in business.  The point of insurance is a numbers game, the company bets that for every customer who pays them $100 for $500 worth of payout, there will be at least four others who pay $100 and never have anything paid out (this is oversimplifying but the illustration is clear).

The really perverse thing about Barrycare is that it is not actually fixing the problem.  It’s making the big insurance companies tons of money because they have captive customers, and the dumb ones hear “subsidies” and think “yay free money” that comes from the government and makes what they have to pay relatively comparable to what they were paying before…except you’re passing the bill to your children and grandchildren.

It would have been cheaper to deal with pre-existing conditions standing alone and it wouldn’t have run the entire health insurance industry aground to do it.  But of course that would not have been the crucial first step towards bringing one-sixth of the American economy under government control and moving towards single payer health care by deliberately making this a self-destructive mess.


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