# Health Insurance Is a Scam, Why Do People Buy It? **URL:** \ **Category:** Great Debates\ **Created:** [March 31, 2012, 9:25pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414 "2012-03-31T21:25:35Z")\ **Posts on this page:** 20\ **Page:** 7
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [April 22, 2012, 6:34pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/121 "2012-04-22T18:34:35Z")
> [@iltep](#): > > You only pay $800 a month for a family of six? That is cheap cheap cheap man. How much is the yearly deductible? For me, a single guy with no dependents a years worth of health insurance would be about $3000 for full coverage plus a deductible of another $5000 before any benefits kicked in. For a guy like me who never goes to the doctor and never gets sick, I also think health insurance is a scam. I also believe all insurance is a scam especially when it is mandated like auto insurance. Auto insurance guarantees that if you are a good driver, your rates are based upon your credit score or the rest of the idiot drivers in your county and not on your good driving record. Huge scam. Eh? Your auto insurance rate _is_ calculated at least in part on your driving record. Also, health insurance costs vary considerably between states because of variable health costs. Health insurance is extremely expensive in Florida because we have lots and lots of malpractice suits (ironically, at least partly because we have minimal professional regulation of the medical provider fields). ---
**Author:** ![jasg](https://avatars.discourse-cdn.com/v4/letter/j/f0a364/32.png) [@jasg](https://boards.straightdope.com/u/jasg)\ **Post date:** [April 30, 2012, 7:09pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/122 "2012-04-30T19:09:13Z")
[Here](http://www.businessinsider.com/cost-of-health-insurance-around-the-world-2012-4) is an interesting comparison of health insurance costs around the world, as analyzed by the Deutsche Bank’s Global Markets Research Team. The US is number 1! ---
**Author:** ![JackieLikesVariety](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jackielikesvariety/32/296_2.png) [@JackieLikesVariety](https://boards.straightdope.com/u/JackieLikesVariety)\ **Post date:** [June 30, 2012, 9:51pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/123 "2012-06-30T21:51:32Z")
I agree that it’s a scam as long as it is possible to be “covered” but still be forced into bancruptcy from medical bills and as long as it’s possible to be “covered” but still have your doctor’s plan/meds/whatever denied by some suit whose **job** it is to deny coverage ---
**Author:** ![InsideInformer](https://avatars.discourse-cdn.com/v4/letter/i/90ced4/32.png) [@InsideInformer](https://boards.straightdope.com/u/InsideInformer)\ **Post date:** [December 25, 2015, 4:59am UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/124 "2015-12-25T04:59:50Z")
Health Insurance for most medications, doctors visits and simple medical procedures pays very little in the end. Most medical visits and procedures are “billed” to your insurance provider at an artificial cost, usually between 50% to 80% above the price charged for cash paying patients. (In some cases even 90% above true cost.) As an example, say a doctor’s visit runs cash customers $100, you will see your insurance billed at $400. Since most policies cover 80% you will pay $80 out of pocket, and while your insurance shows you that they paid the $320 difference, they actually only pay the remaining $20.00 of the true service price. Yes it is dishonest, but the Health Insurance companies must build a perception of value for the high premiums paid. As for medications, they usually get you at the Pharmacy as well. Most prescriptions are inexpensive ($4 to $8 for a one month supply) Yet most prescription Co-Pays run $10 and up so the insured actually pays MORE than the uninsured cash customer. As for the more expensive medications, they are either not covered by most plans, or only available through the insurance mail order pharmacy partner that charges the company 50% of the retail cost. Major medical procedures are usually the only time that health insurance is a value to the consumer. ---
**Author:** ![Desert\_Nomad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/desert_nomad/32/177_2.png) [@Desert\_Nomad](https://boards.straightdope.com/u/Desert_Nomad)\ **Post date:** [December 25, 2015, 5:28am UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/125 "2015-12-25T05:28:28Z")
> [@jasg](#): > > It depends on where you live. > > In Washington state, I pay $279/month for a policy with a $3500 deductible, 50% co-insurance and a $5000 max out-of-pocket costs… The same thing in Nevada with a $7,000 deductible costs about $360. ---
**Author:** ![Gozu](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/gozu/32/6615_2.png) [@Gozu](https://boards.straightdope.com/u/Gozu)\ **Post date:** [December 25, 2015, 6:25am UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/126 "2015-12-25T06:25:57Z")
it’s a scam if it’s for profit. That’s mathematically guaranteed. Needs to be non-profit and cover the entire population for it to make sense. ---
**Author:** ![nicky](https://avatars.discourse-cdn.com/v4/letter/n/f0a364/32.png) [@nicky](https://boards.straightdope.com/u/nicky)\ **Post date:** [December 25, 2015, 9:18am UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/127 "2015-12-25T09:18:00Z")
> [@septimus](#): > > I’m curious about details. Price seems low even with high-deductible and no existing conditions. What about someone like myself, with a history of heart failure? But the tourists are very unlikely to require expensive long term care. Theyll be patched up and flown home. ---
**Author:** ![lance\_strongarm](https://avatars.discourse-cdn.com/v4/letter/l/87869e/32.png) [@lance\_strongarm](https://boards.straightdope.com/u/lance_strongarm)\ **Post date:** [December 26, 2015, 10:53pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/128 "2015-12-26T22:53:24Z")
> [@wolfman](#): > > Another thing with insurance, if you are dealing with an in network situation, is the hospital has negotiated very hard to set a low charge, whether you pay it or they do. Bingo. And even when you are out of network your insurance may still require you to pay less than you would have otherwise. ---
**Author:** ![jerry\_smissingfinger](https://avatars.discourse-cdn.com/v4/letter/j/e56c9b/32.png) [@jerry\_smissingfinger](https://boards.straightdope.com/u/jerry_smissingfinger)\ **Post date:** [December 26, 2015, 11:12pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/129 "2015-12-26T23:12:50Z")
Why the fuck do medical procedures or cancer treatments cost so much in the first place. O.K maybe somewhere around 50-80K to be cured of cancer not millions like someone stated earlier. I went to the eye doctor and paid less because I have no eye insurance. Still scratching my head over that one. ---
**Author:** ![Grim\_Render](https://avatars.discourse-cdn.com/v4/letter/g/a87d85/32.png) [@Grim\_Render](https://boards.straightdope.com/u/Grim_Render)\ **Post date:** [December 27, 2015, 2:16am UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/130 "2015-12-27T02:16:33Z")
> [@jerry\_smissingfinger](#): > > Why the fuck do medical procedures or cancer treatments cost so much in the first place. O.K maybe somewhere around 50-80K to be cured of cancer not millions like someone stated earlier. > > I went to the eye doctor and paid less because I have no eye insurance. Still scratching my head over that one. Because people have no ability to refuse to purchase a cancer cure when they have cancer. (OK, they can chose not to, but that results in death). It is called “price elasticity”. The less ability people have not to buy, the higher prices can go, unless there are mechanisms to counter this. ---
**Author:** ![lance\_strongarm](https://avatars.discourse-cdn.com/v4/letter/l/87869e/32.png) [@lance\_strongarm](https://boards.straightdope.com/u/lance_strongarm)\ **Post date:** [December 27, 2015, 3:16pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/131 "2015-12-27T15:16:50Z")
> [@iltep](#): > > You only pay $800 a month for a family of six? That is cheap cheap cheap man. How much is the yearly deductible? For me, a single guy with no dependents a years worth of health insurance would be about $3000 for full coverage plus a deductible of another $5000 before any benefits kicked in. For a private policy. Group policies, usually through an employer, cost much less, and often involve the employer paying for some or most of the premiums. Still, I find it hard to believe that a single guy can’t find private insurance for much less than $3,000 with a $5,000 deductible. Are you 85 years old or something? ---
**Author:** ![Fear\_Itself](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/fear_itself/32/19637_2.png) [@Fear\_Itself](https://boards.straightdope.com/u/Fear_Itself)\ **Post date:** [December 27, 2015, 4:20pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/132 "2015-12-27T16:20:19Z")
> [@iltep](#): > > You only pay $800 a month for a family of six? That is cheap cheap cheap man. How much is the yearly deductible? For me, a single guy with no dependents a years worth of health insurance would be about $3000 for full coverage plus a deductible of another $5000 before any benefits kicked in. Wrong. The Affordable Care Act mandated a lot of services for all health insurance policies, not just those obtained through Obamacare. These are preventative services, and must be provided at no charge [even if you have not met your deductible](http://www.aarp.org/health/health-care-reform/info-07-2010/health_care_law_and_preventive_care.html): > [@](#): > > Services for all patients:[ul] > [li]diabetes screening[/li][li]colorectal cancer screening[/li][li]high blood pressure screening[/li][li]tobacco cessation counseling[/li][li]screening for depression[/li][li]dietary counseling[/li][li]HIV screening for those at risk of the disease[/li][li]screening for obesity and weight loss counseling[/li][/ul] > > Services for men: > [ul] > [li]cholesterol screening (35 years and older)[/li][/ul] > > Services for women: > [ul] > [li]mammograms every year[/li][li]cervical cancer screenings[/li][li]colorectal cancer screening[/li][li]osteoporosis screening[/li][/ul] In addition, you are allowed one wellness visit to your primary care doctor at no charge each year. > [@](#): > > For a guy like me who never goes to the doctor and never gets sick, I also think health insurance is a scam. How do you know you will never get sick? People frequently get cancer and other catastrophic diseases they never expected. Not to mention accidents: young single guys are the most likely to suffer a serious accident because they engage in risky behavior. ---
**Author:** ![jayjay](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jayjay/32/6765_2.png) [@jayjay](https://boards.straightdope.com/u/jayjay)\ **Post date:** [December 27, 2015, 6:04pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/133 "2015-12-27T18:04:29Z")
> [@Fear\_Itself](#): > > Wrong. The Affordable Care Act mandated a lot of services for all health insurance policies, not just those obtained through Obamacare. It should probably be noted that **iltep** posted that in 2012, before the ACA took effect. ---
**Author:** ![PhillyGuy](https://avatars.discourse-cdn.com/v4/letter/p/ed655f/32.png) [@PhillyGuy](https://boards.straightdope.com/u/PhillyGuy)\ **Post date:** [December 27, 2015, 9:42pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/134 "2015-12-27T21:42:09Z")
> [@curioushat](#): > > Why do we continue to allow health insurance companies to make huge profits off us on a yearly basis? I don’t know. I am on a non-profit Blue Cross plan. I realize that some Blue Cross plans have converted to for-profit, just as have the big mutual insurance companies that used to be owned by the policyholders. I think health insurers should be regulated non-profits. As for what I get from Blue Cross, they negotiate radically lower prices from the participating area hospitals and associated physician groups that my family uses. The amount of the bill they pay for me is not actually as big as the discount they get me off the list prices. ---
**Author:** ![PhillyGuy](https://avatars.discourse-cdn.com/v4/letter/p/ed655f/32.png) [@PhillyGuy](https://boards.straightdope.com/u/PhillyGuy)\ **Post date:** [December 27, 2015, 9:45pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/135 "2015-12-27T21:45:44Z")
> [@jerry\_smissingfinger](#): > > I went to the eye doctor and paid less because I have no eye insurance. Less than list. But are you sure it is less than the eye doctor typically receives from insurers? ---
**Author:** ![lance\_strongarm](https://avatars.discourse-cdn.com/v4/letter/l/87869e/32.png) [@lance\_strongarm](https://boards.straightdope.com/u/lance_strongarm)\ **Post date:** [December 27, 2015, 10:47pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/136 "2015-12-27T22:47:44Z")
> [@jayjay](#): > > It should probably be noted that **iltep** posted that in 2012, before the ACA took effect. Good point. He might also have had a pre-existing condition back then. ---
**Author:** ![foolsguinea](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/foolsguinea/32/14751_2.png) [@foolsguinea](https://boards.straightdope.com/u/foolsguinea)\ **Post date:** [December 28, 2015, 4:52pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/137 "2015-12-28T16:52:27Z")
> [@InsideInformer](#): > > Health Insurance for most medications, doctors visits and simple medical procedures pays very little in the end. Most medical visits and procedures are “billed” to your insurance provider at an artificial cost, usually between 50% to 80% above the price charged for cash paying patients. (In some cases even 90% above true cost.) As an example, say a doctor’s visit runs cash customers $100, you will see your insurance billed at $400. Since most policies cover 80% you will pay $80 out of pocket, and while your insurance shows you that they paid the $320 difference, they actually only pay the remaining $20.00 of the true service price. Yes it is dishonest, but the Health Insurance companies must build a perception of value for the high premiums paid. > > As for medications, they usually get you at the Pharmacy as well. Most prescriptions are inexpensive ($4 to $8 for a one month supply) Yet most prescription Co-Pays run $10 and up so the insured actually pays MORE than the uninsured cash customer. As for the more expensive medications, they are either not covered by most plans, or only available through the insurance mail order pharmacy partner that charges the company 50% of the retail cost. > > Major medical procedures are usually the only time that health insurance is a value to the consumer. Thank you for this informative post, and welcome to the SDMB! This information might get lost in this “zombie” thread. Have you considered starting your own thread? ---
**Author:** ![Saint\_Cad](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/saint_cad/32/18907_2.png) [@Saint\_Cad](https://boards.straightdope.com/u/Saint_Cad)\ **Post date:** [December 28, 2015, 7:51pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/138 "2015-12-28T19:51:30Z")
I have loooong been saying this. So I get to pay a couple hundred a month to cover medical costs and then I get to pay my own medical costs when I get ill. How does that make sense? ---
**Author:** ![jasg](https://avatars.discourse-cdn.com/v4/letter/j/f0a364/32.png) [@jasg](https://boards.straightdope.com/u/jasg)\ **Post date:** [December 30, 2015, 6:16pm UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/139 "2015-12-30T18:16:43Z")
I pay a couple of hundred a month to insure my home and then get to pay my own costs when it needs painting or a new roof. How does that make sense? ---
**Author:** ![GrumpyBunny](https://avatars.discourse-cdn.com/v4/letter/g/bc8723/32.png) [@GrumpyBunny](https://boards.straightdope.com/u/GrumpyBunny)\ **Post date:** [December 31, 2015, 12:24am UTC](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414/140 "2015-12-31T00:24:20Z")
> [@InsideInformer](#): > > Most prescriptions are inexpensive ($4 to $8 for a one month supply) Source? Link? [Previous page](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414.md?page=6) [Next page](https://boards.straightdope.com/t/health-insurance-is-a-scam-why-do-people-buy-it/617414.md?page=8)