tag:blogger.com,1999:blog-20077444.post1455333275192208704..comments2024-03-26T04:21:43.535-05:00Comments on Free Association: George Orwell, Call Your OfficeSheldon Richmanhttp://www.blogger.com/profile/15672237234580563637noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-20077444.post-70960358698437861432009-07-21T20:06:28.838-05:002009-07-21T20:06:28.838-05:00Even before the event, insurance does not pay loss...Even before the event, insurance does not pay losses. Insurance merely performs a pooling service.<br /><br />If you face a one-in-hundred risk of a $100,000 illness, insurance allows you to trade that for a $1,000 cost-certain, as the premium.<br /><br />We only feel insurance pays for healthcare because of a blunder in the 1940s, which made employer-paid premiums a pre-tax benefit.<br /><br />No defense of insurers here, only a note that the only social purpose of insurance is price discovery for risk, NOT wealth transfer.<br /><br />we must break the association of insurance and healtcare, with examples like "food insurance" or "car maintenance insurance," so that the populace understands they only get what they pay for.Robert Arvanitishttp://www.riskfinanceadvisors.comnoreply@blogger.com