Re:How Do Insurance Companies Know My Health History? (2017)
by zimbatm on Friday October 19, 2018 @11:24AM
(#18257340)
The argument was based on the premise that the insurer would drop anyone that would cost more than they pay.
In that system everyone who pays the insurance would be better off putting the money aside as they wouldn't have to pay for the admin overhead.
Even if the catastrophic event happens early in the timeline it would probably be better to take out a loan than to pay the insurance.
I disagree. The “the lucky should share in the costs of the unlucky” aspect of insurance still is there; the difference is that, in a perfect information world with self-serving individuals, the need still is there for the unlucky, but the lucky won’t be willing to take part.