Saturday, July 08, 2006

Health Care

This is just a random thought I had a few months ago, to which Noumenon raised his usual criticism: that I'm too far removed from the problem to understand any of the intricacies. Anyway, it occured to me that the cost of health care is extremely back-end loaded. Most of one's life-time health care costs are in the last month or two of life. Similarly, life insurance is back-end loaded. Therefore, we could sell health insurance like life insurance. You buy a policy when you're young, paying premiums and building cash value during your healthy years, and then drawing on it in later years when your health has gone sour.

1 Comments:

Blogger Noumenon said...

It depends if people actually want health insurance or just someone else to pay their regular medical expenses.

(I don't typically agree with this source, and I notice he claims Mama and Papa's $5000 deductible policy doesn't exist. But it's a good perspective.)

11:31 AM  

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