Many Americans rely on their cars to get to work without a car means that no rent or mortgage money , no food, a single parent struggling to make ends meet in the suburbs with 100,000 miles on the odometer . way that would welcome the opportunity to guarantee insurance for low price to take care of all the repairs possible in her automobile until it reaches 200,000 miles or dissolution , whichever comes first , especially if the insurance is valid without . regardless of whether she had the oil changed in the interim.
So why not have a car insurance company directly or through journalism . Used car dealer ? And the importance of reliable transportation , why not the public demanding such coverage or not, the answer is that both auto insurers and the public know that such insurance can not . Written for the insurance premium can afford while still allowing the insurers to stay solvent and profitable, as a society , we intuitively understand that it costs . Related to the care of all the needs. Mechanical failure of old cars especially . In the absence of Regular maintenance is not guaranteed, but we do not seem to have the same instinct about health insurance.
If we pull the emotions out of health insurance , which is admittedly hard to do, even for this author , and look at this from an economic perspective with insights from multiple car insurance that can illuminate the design chosen . and risk Rankings Health insurance
Car insurance comes in two forms: the traditional insurance you buy directly from your agent or insurance company and warranty with the purchase of an automobile manufacturer . And dealers both are risk transfer and device sharing , and I typically refers to both as insurance because auto insurance liability of third parties not equivalent in health insurance for the insured car . I checked the original collision , and comprehensive insurance - insurance covering the vehicle - and not third parties. Liability Insurance
Bumper to bumper
The following is a generally accepted principle of auto insurance .
* Maintenance is not good to make some insurance if the car owner never changes. Oil, power train warranty is void car . In fact, not only does the oil need to be changed, the changes will have to be performed by technicians. Certified and documented collision insurance does not cover cars that drive towards the cliff.
* Best insurance to offer a new style bumper to bumper warranty is available only on new cars as they roll off the assembly line cars with low risk and relatively consistent satisfaction actuarial tests . For pricing insurance, the car manufacturers usually wrap at least some coverage in the price of cars . In order to foster new relationships. Continuously with a
* Insurance available for older cars Insurance more for older cars warranty bumper to bumper warranty rail power finally expired , and the amount of collision and comprehensive insurance steadily decreases based on. market value of cars
* Some old cars , old cars qualify for additional insurance , some may be eligible for . Additional protection in terms of guaranteed used cars or collision increases and comprehensive insurance for vintage cars , but such insurance is offered only after the inspection. Carefully the car itself
No insurance is offered for normal wear and tear wiper blades to replace the brake pads wear out, and bumpers get dings are not a guarantee of events as new car dealers will sometimes cover some of the cost of these. We intuitively understand that we are " paying for it " in the cost of the car and that it was " not true " insurance .
* Accidents are only guaranteed event for the oldest automobiles . accident Incidents are generally guaranteed , even for cars. The oldest ; With a few exceptions, they're not .
* Insurance does not restore all the cars condition before the accident. Car insurance is limited to damage to the car at any age exceeds the value of the vehicle , the insurer then pays only the value of the car , with the exception of antique cars have values assigned to cars can be reduced over time , so at the moment. accident insurance when the amount of insurance on any vehicle accident to be more limited .
* The price hedging insurance price is based on the risk profile of both car and driver auto insurance company carefully examines both when determining rates.
* We pay for our own insurance and with a few exceptions . Car insurance is not tax deductible as a result, the fear of increased insurance rates. Due to traffic violations and / or accidents. Has changed Our driving behavior and we sometimes select our automobiles based on their insurability.
Each of the above principles Supported by solid actuarial theory , even though most Americans . Can not explain the mathematical theory underlying most everyone . Understand the above principles of auto insurance is easy . To determine whether a car is indispensable to the life of our movement will come with a moral evil that will turn these principles.
Unsustainable market
In contrast, similar principles are routinely violated in health insurance. Demonstrate this, let's get back to even the suburbs of the same paragraph , she was busy working, driving to and from work and driving her kids to school and she ends each day exhausted to sit. on the couch with fast food , she was obese with a sedentary lifestyle , eating poorly and did not take the time to visit a doctor in the past year after the injury is not healing a week ago, she would. turn up at the emergency room and know that she has diabetes type II even though diabetes type II can control diet change and exercise properly and habit tracking her condition takes time and effort, and she was not . been very successful in implementing the necessary lifestyle changes .
So a visit to the emergency room is just the first start of a long list . Of health care Associated with diabetes is not controlled , and other problems associated with obesity , whether you have insurance or individual insurance she pays for each episode of care , without singling her out for the increase . Premium and no Charging her share cost any more than the cost to most health , medical and insurance diligent coverage of her as she continues to voluntarily changes insurance companies and / or employers or becomes. have the right to Medicaid if she is covered under group insurance she could not pay a premium for any insurance , she continued , even though the disease is caused by the neglect of her body, and she continued to maintain their lifestyle. her poor even after the disease becomes known.
This just It does not happen on auto insurance . This situation is equivalent Car Insurance Of access Guaranteed to lower auto insurance rates to take care of every possible repair , including damage already done to it until the car falls apart. To complete a MA ( death) or up to 200,000 miles (Medicare) , regardless of whether she had changed the oil (takes care of himself ) in between.
As a society we do not expect this in the car insurance sector in the market, but we expect it in the private health insurance market is also a singer of national and state constantly pushing us . far From auto insurance principle
Current health insurance market is not sustainable prices have been steadily rising faster than inflation . Decades , each year the insured health care. More than ever , and more and more people get any insurance actuaries and most others in the market for private health insurance do not want a national health insurance with bureaucracy and one -size fits all its benefits , however. We are trying to keep the private insurance system, which violates the principle that we know is necessary for the private insurance market .
Related health insurance holiness Of human life and It is therefore Unlike Car insurance , but if we can help make the most of private market health insurance actuaries to explain the larger society in terms that society understands the reason for the following principles .
* As sacred health care is still economic transactions that must be balanced by individuals and society with economic alternative other it can not sometimes be secondary to other options in the day. for example, parents in our situation might be to focus on her car over her health.
* Insurance premiums should be paid by individuals and is associated with risk factor control will provide the best incentives to control risk factors.
* Although it is difficult to draw the line between abuse , neglect and self- abuse should not be insured and we have to draw the line somewhere .
* Private market can not provide unlimited self-directed health insurance.
* Routine care and ongoing treatment of chronic illnesses before funds can also receive subsidies , but they are not a " guaranteed event . " .
* Insurance can not expect to every human body is in pristine condition , the number of health care would not have prevented the death of the best of all.
Coverage not cover non-subsidized private market is not for the people. Serious health impairments
* Private healthcare market Can provide limited health insurance subsidies, such as the prevention of accidents to persons with impaired health.
* Individuals who are able to do so, and take good care of yourself should be able to "buy " for good coverage with the option to buy more. For everything else in life
Debate These principles are absent from most of the debates. Current health insurance if society intuitively. Can understand that similar principles apply to health insurance , then they should be able to understand the context. Health insurance , we need to start the discussion.
Comments are only the opinion of the author, it is not official policy of the show . American Institute of Statistics ; Nor does it necessarily reflect the opinions of the institutions of each staff member or staff.
