General Discussion
In reply to the discussion: Some things that should NEVER be "PRIVATIZED" in a Democracy: [View all]thetonka
(265 posts)The only way to make insurance sustainable is to manage the risk/cost ratio. The insurer gambles on whether the income from the insurers will cover the cost of coverage. If the risk is high that the coverage cost will be high the cost to the insurer MUST be high.
Adding profit on top of that is just a guarantee to profit even if the gamble pays off.
What many think of as insurance today, including what the ACA intends to create, is NOT insurance. It is more of a health care services payment system, where the risk/cost ratio is not really a factor and profits are still allowed.
I was always against the push to force more and more people into buying a product, then corrupting the product to offer no long term sustainability.
Spreading the risk over a larger group, allowing the risk/cost ration to be a factor, and eliminating the profit motivation creates the foundation for a sustainable and valuable insurance system. It does not have to be run by the government, in fact I would prefer it not be. Leaving decisions about my insurance in the hands of the ever swinging pendulum of Republican -> Democrat -> Republican -> Democrat nightmare makes the option of government control even more frightening than corporate control. An insurer owned non-profit co-op style system would be MUCH better.
This is a big reason why my family has Kaiser for our Health care.