leave many Americans
car insurance for health insurance principles apply
Many Americans rely uff (typically Berlin) come to their cars to work. No car is no work, no rent or mortgage money, no food. A single mother struggling to beyond the ends meet in loan interest suburbs would with 100,000 miles out the clock, presumably welcome the guaranteed opportunity for cheap insurance, which would take all possible repairs to her car, until this day, where it reached 200,000 miles or falls apart, whichever comes first. Especially if the insurance is valid regardless of whether they change the oil in which nevertheless meantime.
So why not the auto insurance companies writing such coverage, either direktemang or by using car dealer? And due to the fact that meaning which reliable transportation, why not the public demanding such coverage? The answer is that both know auto insurers and the public that such insurance can not for a premium the insured can afford to be written, as long as the insurer to remain solvent and melt profit. Qua society, we have to understand unplanned, that the costs are dissatisfied with the service of every mechanical need of an old car, is primarily the lack of regular maintenance that are insurable. However, we do not seem the same views with regard to health insurance lead to.
If we pull out the feelings which health insurance, which do indeed heavyweight, second fiddle to this author, and look at the health insurance is from an economic point of view, several findings from auto insurance, the lighting of that design, risk selection and evaluation of health insurance can.
auto insurance comes in two forms: the traditional insurance from your agent or unchanged c / o insurance and guarantees, the loan interest automotive manufacturers and dealers are purchased. Both are risk transfer and sharing of equipment and I will both generally relate, such as insurance. Because car insurance is not reflected in the health system for the traditional auto insurance, I will consider only collision and comprehensive insurance - insurance for this vehicle - and not third-party liability insurance.
Bumper to Bumper
Below are a few generally accepted principles of auto insurance: * Bad maintenance voids
certain insurance. If a car owner never changes this oil, the car's powertrain warranty expires. In this act, not only this oil must be changed, change must be performed by a recognized and documented. Collision insurance does not cover automobiles, providing plenty of a cliff restless.
* The best insurance is offered for new models. Bumper to bumper warranties are offered only to new cars. they roll off the assembly line quality, cars have a low risk profile and relatively consistent satisfaction of those actuarial test for insurance pricing. In addition, automobile manufacturers in this rule at least a few diapers in reporting the price of the new car to promote a sustainable relationship with the owner.
* Limited insurance is offered for yesterday's car model. Increasingly incorrigible insurance is offered for cold coffee model cars. loan interest bumper to bumper warranty expires, drive train Warranty runs out eventually, and the amount of collision and comprehensive insurance is steadily declining out which car is based on market value.
* Some older cars will qualify for additional insurance. Some older cars may qualify for additional coverage, either in the form of guarantees for used cars and increased collision and comprehensive insurance for vintage cars. Nevertheless, such insurance is only offered for a careful examination of the automobile itself.
* No insurance is offered for normal wear and tear. Wiper blades should be replaced from wear pads and bumpers get dents. Which are not insurable events. composed to the extent that a new car dealer cover some of these costs, we understand without thinking that we "pay for this purpose" associated (with) the cost of the car and that to conclude "not really" .
* Accidents are the single insurable event for the oldest cars. Accidents are generally insurable events in that even the oldest cars, with few exceptions, maintenance is not.
* Insurance does not back up vehicles before the accident state. Auto insurance is restrictive. If the damage to the car at any age exceeds the value of this car, these insurers will pay only the value of the car. cars With the exception of these vintage, this value is assigned to the car during that time. While about accidents at any age of vehicle can be insured, the amount which accident insurance is increasingly restricted. * Insurance
this risk is boasting. The insurance is covered up that of the risk profile of both the car and that driver prices. The auto insurer carefully examines both the frame (by) this setting tariffs.
* We pay for our own insurance. And with few exceptions, car insurance is not tax deductible. As a result of this fear because of rising insurance premiums, traffic violations and / or accidents changes our own driving behavior and sometimes we choose our cars uff (berlinerisch) loan interest based on their insurability.
Each of the above principles is supported by the actuarial firm. Although most Americans can not describe the underlying actuarial theories, understands well each of the above principles of motor insurance which is also intuitive level. For sure, as indispensable automobiles, our own life, there is no loud national movement, accompanied by moral outrage to change selbige principles.
Unsustainable Market
In contrast, similar principles are routinely broken in the sickness insurance. To demonstrate this, we want the same S-mother returned from the first paragraph. It is hard, riding to and from work, and commute (between) their children to school and activities. She ends each day exhausted, sitting up that couch with mostly food. She is overweight, has a sedentary lifestyle, poor diet, and does not have the time to go to the doctor in over the years. After a simple injury will not heal for weeks, it turns into that emergency room and learns she has type II diabetes, although diabetes Type II is controllable, changing diet and exercise habits and properly tracking her condition requires time and effort, and it never quite triumphantly in which implementation of which required changes in lifestyle.
In consequence, the first emergency room only which first of a long list of health care associated with uncontrolled diabetes and other loan interest associated with obesity. Whether they individual or group lessons have insurance, their insurance pays for each episode of care, without singling them out for a premium increase, and without charging her more as cost-sharing among the healthiest and medically insured diligently calculated. Your coverage will continue until she voluntarily changes insurance companies and / or employers, or is eligible for Medicare. If they covered under group insurance she may not even pay any premium. Your insurance is unbroken, although the disease was caused by the neglect trust her body, and she maintains her poor lifestyle secondary to the disease. The one simple
would not happen in auto insurance. This scenario is the auto insurance policy meets the guaranteed access to low cost car insurance to ensure that any repairs, including damage already done in two, until the day the car is so completely it is considered unusable (death) is reached or 200,000 miles (Medicare), regardless of whether they are subordinate to change the oil (takes care of itself) in this interval.
For society, we do not expect this in private auto insurance market, in contrast, we expect that in private health insurance market. In addition, there are united chorus of the national and state interests, which continuously drives us further away from this car-insurance principles.
Which current private health insurance market that is not sustainable. The loan interest rates consistently growing faster than inflation for decades. Each year, more health insurance than ever before and more people for no insurance Gar Most actuaries and other people in the private health insurance market does not move with his national health insurance bureaucracy and one-size-fits-all benefits. Nevertheless, we try to have private health insurance, that of the principles we know are for the private insurance market to obtain necessary bruised like men.
yes, the health insurance that sanctity of human life and is therefore different from auto insurance. Other hand, if we market to a private health insurance solution sustainable, need actuaries to demonstrate to the larger society in terms up the company, understands the reasoning behind the following principles:
* frowned upon as such as health care, it is still an economic transaction that will cool from individuals and companies added to other economic decisions. It can not be infinite. Sometimes it is secondary to other choices. On any given day, for example, the mother in our scenario value their car more than their health.
* insurance premiums should be paid by every individual and tied to controllable risk factors. This is what best Incentive for the control of loan interest
* Although there is a real heavyweight, to draw the line between abuse, neglect and ignorance, self-abuse should not insured and we must consider which line somewhere.
* The private market can not be inconceivable, self-directed health insurance.
* Regular maintenance and routine treatment of chronic diseases can be pre-funded, can even be subsidized, but they are not "insurable events."
* Insurance can not be expected every human body to keep them in pristine condition. No amount of those health care prevents any ultimate death.
* Comprehensive, unlimited, non-subsidized private coverage is not possible for people with severely impaired health.
* The private health insurance market can not be subsidized health insurance, such as protection from accidents, providing medical impairment even narrow-minded individuals.
* People loan interest can afford it and who take good care of themselves should be in this situation "buy up" to better care. People have the option of purchasing up for whatever else in life.
The discussion of these principles is the which most current health insurance debate is missing. If the company ill know how similar principles apply to health insurance, then they should be in this situation, the principles of health insurance in this context. We must initiate the debate
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