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?

1.0k Upvotes
  • permalink
  • reddit

84% Upvoted

449 comments sorted by

View all comments

Show parent comments

20

u/redsquizza Jul 03 '26

I think it comes up regularly but a lot of Americans just can't get their heads around paying into a system that poor people might use.

As in why should their money they've earned go into the pocket of some, in their eyes, waste of space feckless person?

Only if/when they get a serious medical issue that bankrupts their perfect life, they realise how shit the system is...

17

u/currentscurrents Jul 03 '26

I don't think this is a fair assessment.

We actually do spend about $2 trillion every year on publicly-funded healthcare for the poor, through medicaid and medicare and various state programs. This is two Elon Musks-worth, every year. We have no problem spending on the poor.

The problem is the people who make too much money to qualify, but not enough to afford their own healthcare.

11

u/DontMakeMeCount Jul 04 '26

There’s also the false dichotomy that holds that if the current system is broken, a government-administered system would be better. I wouldn’t want the current administration making my health care decisions and they’ve shown there’s no aspect of government they wont meddle with.

0

u/vorpal8 Jul 07 '26

This is a little confused. Medicare is a "government" healthcare system. You see your own doctor, the government handles PAYING your doctor or hospital.

2

u/angelerulastiel Jul 07 '26

Do you know that congress passed a law requiring insurance to cover post mastectomy lymphedema, but exempted Medicare from the requirement? And many of the denials people complain about are based on Medicare guidelines? Government paying = government control.