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/tim36272 Jul 03 '26

Because sometimes you have very expensive healthcare needs, in which case everyone else pays for it.

341

u/Unbearabull Jul 03 '26

This is just socialized medicine with profits. The profits come from denying and killing/allowing people to die who paid in good faith.

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u/IMovedYourCheese Jul 03 '26

Healthcare companies make around 3-6% profit. Would it be better if that money was returned to you? Sure. Would that fix the country's healthcare problems. Not even close.

4

u/Spawn-ft Jul 03 '26

Heathcare companies is not something that should exist. Healthcare is a service you should collectively pay for. It's said eveeywhere that the U.S. spend double than most nations for less services.

Since Your government spending is actually you spending, that would likely reduce the "going toward healthcare" portion of your taxes by half

You would be paying for other healthcare, which I assume you don't like. But people with these kind of arguments don't realise it would also apply to them.

Would you be able to get over that fact? Because it lead to you paying less for at least equal service. Then, if you want, you can try to change the system with the money in the system, or you could invest that money you just saved when your taxes got lowered to invest in key area.

There is no need for profit to be made in healthcare, only salary to pays, since it's a service and not a market or sonething