No matter where you look, someone, is talking about the Affordable Care Act, aka ObamaCare. What frustrates me in all these discussions is that healthcare insurance has taken on a life of its own. By my definition, it is out of control because it is no longer insurance.
Insurance, such as auto insurance or homeowners insurance, is a hedge against catastrophic loss. If you wreck your car or your home is destroyed by fire, insurance prevents you from experiencing extreme financial loss.
Health insurance not only covers loss due to medical expenses caused by an unforeseen illness or accident, it also covers preventative care, prescriptions, and other non-catastrophic losses.
Auto insurance doesn’t cover oil changes or pay for new tires. Homeowners insurance doesn’t cover household repairs or pay to get your house painted. Health insurance is not like any other insurance and I think it needs its own category altogether. When a conversation includes a discussion of healthcare, inevitably the argument is brought up that healthcare is a basic right all Americans should have.
Okay, I say, but if that is the case why isn’t food and housing, which I would consider far more import in sustaining one’s life, also a basic right? Should we provide free food and housing to all Americans as a basic right, too? Is this not socialism? Where do you draw the line? What was wrong with old-fashioned indemnity health insurance plans?
You only went to the Doctor when you were sick, and your medical bills were mostly paid out of pocket by you at the time of service. If you needed large expensive procedures and they were deemed a medical emergency or medical necessity by your insurance company, the company would step in and cap your losses.
Has healthcare insurance morphed into some kind of super insurance policy?
