I am irritated by the fact that insurance takes my money. There are many people who ride along with me every day. It is amazing to me how much insurance premiums play into all aspects of our lives and how little it actually covers the reasons we bought these products. It is fascinating to see how insurance has influenced so many aspects our social infrastructure while providing so little return on investment.
There are many elements that all insurance policies have in common, regardless of the type. Some of these elements may be more important than others. The principle behind purchasing insurance for consumers is to pay a premium that is less than the catastrophic expense that would result from a hypothetical event that was covered by the policy. Insurance companies are skilled at finding enough plausible, but rare, circumstances to make people feel that they require the financial protection offered by insurance.
Some types of insurance are now mandatory to complete a transaction. For example, if you need to purchase a house or an automobile or receive adequate medical care, then you will need insurance. No matter whether the policy covers the loss, any property that requires an extended obligation or debt to be owned will have some type of insurance obligation. This adds a layer of hidden costs to the fulfillment of the obligation. The purpose of insurance companies is to make money. These companies do more than just broker funds for those who need them. Contrary to what is believed to be the purpose of creating an insurance vehicle the practice is to create a highly profitable business that is based on plausible fears and avoid actual benefits. The insurance company exists to enrich the lives and company in general, while also providing protection for policyholders.
Insurance companies have developed a variety of mechanisms to protect policyholders’ funds. These mechanisms include cancelling policies in areas that are more likely to be paid out, raising premiums or cancelling polices for those who file claims, finding legal loopholes that deny claims, such as high co-pays, deductibles, and appealing to the government for assistance when large-scale disasters result in policy holders having to pay out large amounts of benefits. There are many situations where insurance companies do not cover the problems that occur frequently.
One of the most severe disconnects between real coverage and actual needs is evident as the Baby Boomer generation goes through its life cycle. In order to keep the industry profitable for the services provided to growing numbers of patients, the insurance companies continue to increase premium costs in order to cover the increasing number of policyholders who try to use their insurance benefits.
We are witnessing a significant consumer burden for the first time in history due to the institutional burden of a profit-based system of benefits coverage. The only way to truly reform our profit-based prescription medicine and health care systems is not to hand over the management of healthcare needs to large government agencies. It would be more realistic to look at ways to reduce the cost of profit-based insurance premiums and channel consumers’ payments directly to actual health care institutions that provide actual patient care services. Instead of redirecting consumer funds from the consumer to profit-based insurance and then to profit-based health care system, it would be more sensible to direct consumer funds from the consumers to health care institutions, with no insurance intermediaries to increase the costs associated with the already complex consumer burdens.
Established health care systems would have the ability to tap into the steady stream of income currently being taken in by insurance underwriters. This would allow them to better meet their current needs and make more efficient plans for future growth. A significant reduction in current cost could be achieved by receiving funds from people who are looking for the promise of future care and channeling the income to those who need it, while still contributing to their own health care needs. Millions of Americans are realizing they cannot afford to support the double-profit system of health care provided by the country. It is time for a restructure of the health care system. This will reward care providers and not make it easier for those who have become unable to provide the care that we need.
