How Does Health Insurance Work?

today's question: how does health insurance work the simple answer is it's about the economy of scale time began mankind is found safety in numbers health insurance coverage is no different when you sign up for coverage you join a group of other people to combine your healthcare purchasing power your insurance covers the whole group rather than individuals so everyone shares the cost of staying healthy it's a lot like an auto insurance company that collects premium payments from its customers then uses that pool of money to pay accident claims when a customer has a written example Gary takes care of himself and he's a healthy high but it's his first time skiing moments after stepping off the lift key plummets down the wrong slope and hits a tree then 5 more free than he slides over the edge of a cliff and it's probably hit by a falling see Justin his wife goes to inform him that she's about to deliver twins Gary's about to be buried under a lot more than snow because costly medical events like these even happy
ones can be expanded without health insurance his broken leg and concussion can cost thousands to treat and depending on the circumstances the birth of his twins could cost anywhere from a few thousand two hundred thousand or more fortunately Gary has health insurance remember that group since the cost to spread out over everyone the people in garrys grouper actually helped offset as costs Gary Schaer of the cost to treat his injuries and deliver his kids will be a lot less because his insurance betting that the money the group pays in will offset the cost of their health expenditures for the year in a sense the healthy people in the group pay the costs when someone is sick or injured knowing that the same help will be there when they need it so instead of paying thousands of dollars Gary's auto pocket cost for minimal he's only responsible for his copay and deductible which vary by ensure health coverage pays for preventive care and reduces your risk of financial disaster because your healthcare costs are spread across a large group of people so now you're​