The fundamental problem with using insurance for all health care

Did you know that even people who are insured in the US, many of them still can’t afford to even go get their symptoms checked?

That is because there’s this thing called co-pay. Which means if the doctor bills $100, you have to pay $50 and your insurance pays the other $50.

And then there are also deductibles. So in each year, until the first $1500 you have to pay out of pocket. And your insurance only kicks in after that.

You see, health insurance is insurance. It protects you from going bankrupt. It protects that downside. But for the model to work, they have to raise the barrier to entry using co-pays and deductibles.

So now you know you need an anti-biotic. But you need to get a prescription from a doctor. But you don’t want to go see a doctor. So you try to self medicate or wait it out. Even if you are insured.

The insurance financial model is not designed for ensuring well-being. It’s designed for protecting from catastrophes. But with no incentive for well-being, catastrophes hit more often. And it’s easier to just raise premiums than to address the systemic problems.

This is not the fault of insurance companies. We can’t blame the hammer if it can’t turn a screw.

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