Insurance is in the bad position of having to sniff out frauds from people in genuine need. There's a lot of people that will engage in extremely scummy behavior hoping for an insurance payout. Automotive-medical fraud, arson as an alternative to selling a property, etc.
Instead of fixing insurance we need to address the underlying causes why insurance even exists. Emergencies should not be economically devastating.
While that is true, I don't think fraud even comes close to the amount of times insurance is just dismissive of people in genuine need. Like for every guy who burns his business down to collect insurance, there are dozens who just lost a home in a flood that get handed a pittance and told to figure it out. I lived in Hurricane country and you had to have multiple home insurances legally (wind, flood, etc.) and every one of them would refuse to pay because of things like "well the wave of water was caused by the wind blowing, so its not our domain, bye."
Emergencies should not be economically devastating.
The problem is that this is circular logic. If insurance paid out reliably and was realistically affordable, emergencies wouldn't be devastating because they'd be covered by a service you paid for to keep their cost within range of what a normal person can afford.
So it comes right back to insurance being far too expensive and far too stingy, which makes every normal person hate them. They might have some genuine reasons for doing so, but the insurance industry is giga rich which undermines them nickle and diming regular people.
They are a business and out to make money, but when your business is in human suffering and you make your money by telling people to die in pain so you can save a buck you have no moral ground to stand on.
Insurance only exists because it is propped up by government regulation. You are (practically speaking) forced to have insurance because the healthcare providers gouge their services.
They gouge their services because there is so much red tape that there is virtually no competition and they can get away with it. If you see what they bill individuals vs what they bill insurance companies, it's insane.
If we had anywhere near a free market, new providers who could do the same thing at 85% the overhead would spring up and eat their lunch.
Insurance is in the bad position of having to sniff out frauds from people in genuine need. There's a lot of people that will engage in extremely scummy behavior hoping for an insurance payout. Automotive-medical fraud, arson as an alternative to selling a property, etc.
Instead of fixing insurance we need to address the underlying causes why insurance even exists. Emergencies should not be economically devastating.
While that is true, I don't think fraud even comes close to the amount of times insurance is just dismissive of people in genuine need. Like for every guy who burns his business down to collect insurance, there are dozens who just lost a home in a flood that get handed a pittance and told to figure it out. I lived in Hurricane country and you had to have multiple home insurances legally (wind, flood, etc.) and every one of them would refuse to pay because of things like "well the wave of water was caused by the wind blowing, so its not our domain, bye."
The problem is that this is circular logic. If insurance paid out reliably and was realistically affordable, emergencies wouldn't be devastating because they'd be covered by a service you paid for to keep their cost within range of what a normal person can afford.
So it comes right back to insurance being far too expensive and far too stingy, which makes every normal person hate them. They might have some genuine reasons for doing so, but the insurance industry is giga rich which undermines them nickle and diming regular people.
They are a business and out to make money, but when your business is in human suffering and you make your money by telling people to die in pain so you can save a buck you have no moral ground to stand on.
Insurance only exists because it is propped up by government regulation. You are (practically speaking) forced to have insurance because the healthcare providers gouge their services.
They gouge their services because there is so much red tape that there is virtually no competition and they can get away with it. If you see what they bill individuals vs what they bill insurance companies, it's insane.
If we had anywhere near a free market, new providers who could do the same thing at 85% the overhead would spring up and eat their lunch.