Why Do We Need Health Insurance Companies?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Like other forms of insurance, the basis of the health insurance companies is the need to share a risk that is too great for an individual.  Companies are formed to provide the framework for administering these groups.  Ultimately the company handles administrative work because the vast majority of the funds received are used to pay the medical expenses of the participants in the plan.
    Answered on August 1, 2014
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  2. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! I'm sure that you aren't the only one who wonders! The sad truth is though, that between costs of research and development, advertising and marketing, and protection from litigation, most health products are considerably more expensive than they need to be. Services, salaries and overhead contribute to costs also. Could you afford to have a medical emergency without health insurance? Guess what - 60% of all bankruptcies are a result of medical emergencies. There's a great reason. Thanks for asking!
    Answered on August 4, 2014
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  3. 2775 POINTS
    Joe 'Gravy' Graves
    Owner, I Hate Buying Insurance, Nashville TN
    Ok... if you've read some of my other posts, I tend to NOT be politically correct. This is one of the oddest questions ever... I really am lost as to why anyone would ever ask such a question. True confusion. Let's just end the entire insurance industry then. Why oh why would you want to put money in a pot with thousands of others to help pay for catastrophic events?? If paying (in today's Obamacare world) a few hundreds a month for the group of others to help pay for your hundreds of thousands when you are diagnosed with cancer sounds out of line, then don't buy health insurance. Just write a check when you are diagnosed. If you are reading this, do not apply a mean spirited tone to my words. I am truly confused... I don't understand. YET... I would place a bet in Vegas that the person asking the question has a car, pays for insurance, lives somewhere, pays for insurance... WHY? FOLKS... you trade a few bucks for thousands, hundreds of thousands, maybe millions. Buy as much insurance as you can afford!!! - gravy.
    Answered on May 22, 2016
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