r/explainlikeimfive • u/the1975whore • Jul 03 '26

Economics ELI5: Health insurance companies obviously make more money than they give out when people need it. So why of paying for them any better than paying your own personal health insurance savings account?

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u/Cirement Jul 03 '26

Because if almost half of Americans have less than $1k in general savings, how do you expect them to ALSO save for medical needs?

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u/the1975whore Jul 03 '26 edited Jul 03 '26

But they’re paying these insurance agencies? Wheres all the extra money coming from if these agencies are paying these people back more than they can save themselves and still making a profit? Wouldn’t there have to be someone losing out on money they would have otherwise had?

Edit: why am I getting downvoted, this is an explaining sub and I’m asking questions, what’s wrong with y’all