tag:blogger.com,1999:blog-11068216.post116108740511028215..comments2023-11-03T00:46:46.649-07:00Comments on Electric City Weblog: Health InsuranceGeeGuyhttp://www.blogger.com/profile/13896054313394692210noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-11068216.post-1161159138619910972006-10-18T01:12:00.000-07:002006-10-18T01:12:00.000-07:00While TSJ and Allen are both a bit off of my origi...While TSJ and Allen are both a bit off of my original point, theirs is an issue I recently wrote about:<BR/><BR/>http://ecityblog.blogspot.com/2006/08/free-health-care.htmlGeeGuyhttps://www.blogger.com/profile/13896054313394692210noreply@blogger.comtag:blogger.com,1999:blog-11068216.post-1161145135014160892006-10-17T21:18:00.000-07:002006-10-17T21:18:00.000-07:00TSJ is right.For insurance to function properly, i...TSJ is right.<BR/><BR/>For insurance to function properly, it must involve, low-frequency high-severity risks. Health Insurance breaks both halves of this rule, because it has evolved to cover high-frequency, low severity risks. Result: increased health care costs and usage, drastically increased administrative costs. If health insurance were offered to cover what health insurance should cover, it would have a very high deductible and kick in for catastrophic losses, leaving families to budget for routine and minor health care expenses like any other part of their living expenses.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-11068216.post-1161101226828907622006-10-17T09:07:00.000-07:002006-10-17T09:07:00.000-07:00GG; A few points;First, the whole point of insura...GG; A few points;<BR/><BR/>First, the whole point of insurance (health, casualty, liability, etc.) is for most insured to pay premiums without submitting claims. All insurance is about subsidizing the few who have to "use" the service. If everyone has claims, then the whole system shuts down.<BR/><BR/>Therein lies the problem with Health Insurance. Most everyone paying premiums has claims.<BR/><BR/>I manage the HR for my company. Part of that job involves managing our health insurance program. As frustrated as I get with the 20% annual price increases sent to us by BCBS, I also understand that cost increases are part of the ball game when everyone paying a premium submits regular claims.<BR/><BR/>Now, with Health Insurance, people make a rational calculation. If they figure that they will not submit enough claims to offset their premiums, they drop out of the program. And the vicious cycle continues.Anonymousnoreply@blogger.com