Health insurance is all about risk pooling to make sure there is a balance between givers and takers, ensuring that people can take what they need without the insurance system collapsing.
When health insurance is done by multiple private companies, they are incentivized to make their risk pool as perfect as possible by denying claims and dumping the takers onto their competitors. That’s probably part of the reason why so many countries just go with a single-payer system in which the government does the insurance aspect of healthcare. It creates a giant risk pool by taxing everyone and, in return, covering everyone. Universal healthcare.
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Health insurance is all about risk pooling to make sure there is a balance between givers and takers, ensuring that people can take what they need without the insurance system collapsing.
When health insurance is done by multiple private companies, they are incentivized to make their risk pool as perfect as possible by denying claims and dumping the takers onto their competitors. That’s probably part of the reason why so many countries just go with a single-payer system in which the government does the insurance aspect of healthcare. It creates a giant risk pool by taxing everyone and, in return, covering everyone. Universal healthcare.