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.


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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