Health Insurance as a Parasite

Discussion in 'Politics & Law' started by Babe_Ruth, Apr 15, 2008.

  1. Babe_Ruth

    Babe_Ruth Sultan of Swat Staff Member V.I.P.

    The Health Insurance Mafia - WSJ.com
     

  2. CMK_Eagle

    CMK_Eagle Registered Member

    I don't doubt that most people view health insurance as a form of protection, but IMO that's not entirely accurate.

    The benefit provided by health insurance is that it spreads risk. At least in theory, health insurance prevents an otherwise economically productive individual from becoming a burden on society due to factors beyond his control. It also allows all individuals, healthy or not, to more accurately predict both their short-term and long-term health costs. This means they need to save less to protect themselves against potential future expenses, which results in each person having greater disposable income, and thus increases GDP.

    Because providing this service is economically beneficial, it naturally (and rightly) creates oppotrunities for profit.

    Problems of inefficiency in the current system are certainly very real, and very costly. However, as has been shown time and again, the best solution to inefficiency is greater competition and transparency, not elimination of a productive service.
     

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