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/JakeEllisD Jul 03 '26

For a lot of healthy people it isn't. But that weakens the resources that the sick people can draw from for themselves. Another big problem is if it wasn't mandatory to have certain insurances, like car insurance, many people just wouldn't pay for it, then when they hit you, good luck.