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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