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Insurance Divides the Risk
A recent headline caught my eye and then poked it!
Most Americans believe that our current system of health insurance needs fixing and many would be willing to pay more to accomplish the task.
What health insurance system are they talking about?
As far as I know there is privately-funded health insurance paid by employers and families; Medicare for seniors; Medicaid for the economically underserved; and free emergency health care for the millions who have no coverage whatsoever.
Now there's talk about calculating insurance premiums based on an individual's health risks. Yes, charging more for smokers, more for overweight people, etc. At first glimpse it seems like an attractive, fair proposition but you soon realize that it is contrary to the entire concept of insurance - pooled risk.
I know, homeowners on flood plains pay extra for flood insurance. Lexus owners pay more for auto insurance than Honda owners. Even life insurance rates are linked to health risks like smoking and hang gliding. You can only apply that analogy so far.
If a smoker is targeted today what about the parents of a child with cystic fibrosis or a young adult driver severely injured in an auto collision? Insurance is pooled risk, and that means you cannot limit access to the pool or tell specific people to get out of the pool!
Rather than restrict coverage, insurance funds could be more wisely invested in proven programs that encourage smoking cessation, safe driving and other healthful behaviors.
If you want to discuss this topic further simply post your comments on my WebMD Vision & Eye Disorders Message Board.
Related Topics: Mental Health Insurance Pays
Technorati Tags: health insurance, pooled risk, Medicare, Medicaid
Most Americans believe that our current system of health insurance needs fixing and many would be willing to pay more to accomplish the task.
What health insurance system are they talking about?
As far as I know there is privately-funded health insurance paid by employers and families; Medicare for seniors; Medicaid for the economically underserved; and free emergency health care for the millions who have no coverage whatsoever.
Now there's talk about calculating insurance premiums based on an individual's health risks. Yes, charging more for smokers, more for overweight people, etc. At first glimpse it seems like an attractive, fair proposition but you soon realize that it is contrary to the entire concept of insurance - pooled risk.
I know, homeowners on flood plains pay extra for flood insurance. Lexus owners pay more for auto insurance than Honda owners. Even life insurance rates are linked to health risks like smoking and hang gliding. You can only apply that analogy so far.
If a smoker is targeted today what about the parents of a child with cystic fibrosis or a young adult driver severely injured in an auto collision? Insurance is pooled risk, and that means you cannot limit access to the pool or tell specific people to get out of the pool!
Rather than restrict coverage, insurance funds could be more wisely invested in proven programs that encourage smoking cessation, safe driving and other healthful behaviors.
If you want to discuss this topic further simply post your comments on my WebMD Vision & Eye Disorders Message Board.
Related Topics: Mental Health Insurance Pays
Technorati Tags: health insurance, pooled risk, Medicare, Medicaid
