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Sunday, July 26, 2015

How Do Health Insurance Businesses Make Money?

How Do Health Insurance Businesses Make Money? 

Ans- Insurance is a transfer system, like Social Security. Premium payers cover claims for the claimants. The insurance company makes a tiny sliver of that plus some of the investment income off reserves.




Profit or non-profit doesn't really have a direct affect on the premium you pay. If that were the case, then the non-profits would be blowing the doors off the profit-companies, but that's not the case. 

Profits are so slim, that the difference isn't significant. They are there to help people. If you're faced with a $25,000 hospital bill and you don't have to pay it, then I think it's safe to call that help.


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