@Walter Hinteler,
Walter Hinteler wrote:
Foxfyre wrote:
If the insurance company loses enough money, it goes bankrupt.
So does the government, but the government doesn't lose its own money. It loses ours, and has the power to demand more and more of it just the same.
I should think that insurance companies don't loose their own money but that of their members. And when they do so, they demand more and more ...
What members? Private insurance is private insurance. The insurance collects a fee (premium) in return for assuming an agreed portion of risk rather than the policy holder having to assume that risk himself. What I pay the insurance company becomes the insurance company's money. If I have no losses, it is theirs to do whatever they wish with it. If I do have a loss, the insurance company is obligated to pay whatever the agreed portion of that loss is even though it will far exceed the amount of premium paid.
If the insurance company 'demands' more premium than I feel is worth it to be relieved of whatever risk, I don't buy the insurance. So, the insurance company has to keep the premium low enough to be affordable and 'worth it' to the policy holder, and more especially low enough to compete with other insurance companies who also want my premium dollars. It is the dual factor of the maximum amount the market will bear and the competition between competing interests that keeps insurance as affordable as it is. If insurance became truly unaffordable, no insurance company could afford to offer it.
Also, if the government had stayed out of it altogether other than to implement practical tort reform to help insurance companies keep their risks manageable, insurance would be a far sight less costly than it is.
There is zero evidence that more government involvement in healthcare will be more cost effective overall.
Further, in order to stay in business, the insurance company has to hold a certain amount of premium money in reserve so that it will be available to pay out in the inevitable losses that will occur.
The government has shown no such discipline, but spends the money as fast as it comes in plus billions--currently trillions--more. If the insurance company is financially irresponsible it goes belly up. If the government is financially irresponsible it just demands more money from the people or goes further and further into debt which will handicap Americans for generations to come.