Hi, I’m from the UK, the healthcare industry in the US has always confused me but one thing I can’t seem to get my head around is how the insurance companies don’t go bankrupt.
I understand how insurance companies work in the fact that they accurately calculate premiums and invest the money whilst not receiving more claims than premiums.
However, in the healthcare industry wouldn’t they receive many claims on a regular basis? Especially from people who require medication on a regular basis e.g Insulin
Furthermore, with hospitals bills and medication being so expensive will they not payout more in bills than they receive in premiums from people?
In: Economics
Same as any other insurance.
Insurance companies are ALL a racket. It makes zero sense, mathematically. They ALWAYS will take more than they pay out, so it makes no sense to ever subscribe insurance for anything (unless mandatory). Just see what premium they charge, and save that sum yourself on a separate account every month, and you’ll come up ahead. It’s math.
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