Car insurance is relatively simple. I shop around, telling them how much coverage I want. They request my driving history, and give me a quote. At any time, I can shop around and change insurance policies without any problems. Once it’s time to collect payment, it’s a relatively simple matter. What makes health insurance so difficult, controlling, unreliable, and expensive? For example, with health insurance:

  • Can only shop during a specific enrollment period

  • Policies are so complex, the vast majority of the population can’t understand them

  • It’s commonly provided in part by the employer because buying a policy otherwise is prohibitively expensive

  • Insurance companies are notorious for denying payments

  • WolfLink@sh.itjust.works
    32·
    2 months ago

    I find it hard to believe that a far market can exist when everyone is required or effectively required to purchase something. If you think of supply and demand, the demand for something like health insurance or legally mandated car insurance is effectively infinite.

    The decision to get car insurance or not is not “is the value this car insurance provides worth the money” it’s “is the value this car provides worth the money”. Similarly, the value of health insurance becomes the value of getting any sort of medical treatment, because it’s generally impossible to get treatment otherwise.

    This allows the insurance companies to charge rates far beyond the value they actually provide, because they are legal gatekeepers to far more valuable opportunities.