Insurance should really be to cover catastrophic events, like a car accident (in the case of auto insurance), death (in the case of life insurance), or major medical incident (break a leg, need surgery, etc.). Insurance might offer preventative incentives if they determine that saves them from future catastrophic payouts. Insurance doesn't cover maxi pads or makeup (to name two obvious things).
I've definitely lost out on cost vs payout from auto insurance....add up what I've paid and what I've received and they've made a fortune off my contributions...a friend of mine worked for an insurance agency and his job was to keep his insurance company from paying out auto accident claims...he showed me a list once of ways insurance companies can get out of paying victims who have paid monthly for insurance as long as they've had driving privileges.....once you stake a claim, the insurance company goes to work against your claim, not to help you with your claim very often.
Insurance fraud exists. How are the companies supposed to deal with it? I've obviously had quite a few claims due to my condition. I've had to deal with the insurance company (Blue Shield) several times. They've been awesome, actually. I got a $8000 bill for a biopsy test from the lab. They only wanted me to pay $800+ of it. I called the insurance company and they gave me a waiver for the test and paid the lab. My cost ended up being $30. Both our stories are anecdotal.
Auto Insurance companies typically make money by taking the premium dollars, investing them in financial products and then handling claims as a loss. Insurance companies still make money even if the claims exceed the premiums. Often with insurance the first premium or two typically go to the agent and then they will get cuts on renewals.
He's making perfect sense. He's saying it's hard to take away someone's government service. Those who have preexisting conditions now expect insurance from cradle to grave.
So, health insurance costs $12 a year and then you have a pretty good plan when you are 70... yeah, makes a lot of sense. I think he's confusing health insurance with life insurance.
As you get older, you use more health care services. From a business standpoint, you should pay more. "As they get something it gets tougher."
@Denny Crane -- Not necessarily disagreeing with that -- unless I have subsidized older people in my life and now you are saying you are going to change the system so that I get screwed with no Social Security and no Medicare (that I have been paying for years with taxes) and/or now I have to pay outrageous health insurance premiums when I get older and the Millenials get to skate. That's unfair to me. Incidentally, you should be Trump's translator! Next G20 meeting. Trump says something in Trump. Denny translates from Trump to English. Russian Translator translates from English to Russian. Success!
He's not a polished politician, that's for sure. Are you opposed to the things he's said he wants? Insurance for all. Better insurance than we have now. Not touching SS or Medicare. Etc. ? If they adopted my proposal, everyone would have access to health care, regardless of having insurance or not, regardless of having medicare or not.
As far as SS goes, the government is on the hook to make the payments. We've seen many local governments get into serious trouble over these kinds of liabilities. Illinois is currently in the news. Obama ran up $10T in additional debt. The Fed kept interest rates near 0% so the interest payments on that debt were low. Low, but still significant money. Think about what this money would buy: As interest rates rise (and they need to and will), the interest expense will increase accordingly. If rates double from ~1% to ~2%, that debt payment turns into $800B and the government doesn't take in enough to pay that and SS and Medicare and Defense and Highways, and all the rest. Without adding more to the debt. Tax the rich isn't the answer. They're the ones buying the debt instruments (T-Bills, etc.). That $375B is being paid TO THE RICH. There's real risk the government will not be able to pay for things we consider important, due to pressure from the debt payments.
I'm not opposed to the goals. But so far he has overpromised on everything in his administration, and his goals are completely unobtainable. He has no idea what he is doing with health care. Absolutely none. Here is what he said a year ago. "They can have everything!"
CNN is raving about Trump having a great day yesterday. "He's showing leadership on health care." As far as the video and promises, I would prefer to hold him to his promises. I think he's right about ObamaCare being a disaster in the long term.
CNN is saying Trump shows leadership? Or the former Trump campaign staffer now a CNN commentator saying so? Not the same thing. How someone shows leadership by 1) having no idea about health insurance 2) not understanding the subject is complex and 3) having three positions in 36 hours is a mystery.
We have it. The 21st century version. It is far cheaper to import labor and pay them the minimum wage, than it is to own them and be on the hook for taking care of them and their off spring.
