Okay… so… all the insurance companies will hate me for this. If the people in the government and the people running for government offices claim this plan as “good” and work to make it happen the future of what is now “insurance’ will disappear and it won’t matter.
Presently we have “insurance” of different kinds. If you wish to drive a motor vehicle, you have to have insurance covering various things like you have to pay for insurance for injuries caused by you or your car, physical damages to other vehicles and things, etc. To obtain such you need “automobile insurance” for which you must pay a “premium.”
If you want to get medical care and are not rich, you presently can get “basic care” for “emergencies” whether you have medical insurance or not, but after a few days the hospital can declare you medically “stable” and toss you out the door… UNLESS you have a lot of cash or medical insurance. With the advent of Obama “care” you can now have “insurance” that pays for your medical expenses after they exceed the amount of your “deductable” (which will probably amount to an amount higher than you’d pay for a new car – and which most people cannot afford so since they never pay the “deductable” to the providers, the government never has to pay off on the “insurance” they mandate that you “buy.” (Just figure that it’s a tax, and the government won’t have to pay out on most people’s “insurance.”)
And of course there is now insurance for just about everything that can happen to you in life. Fire insurance. Yep. Mortgage insurance? Yep. And lots of other kinds of “insurance.”
Where do all these kinds of insurance come from and why do they exist?
1. Most people are insecure. In a world where most people are “just getting by” they consider it essential to have a way to hold on to some value even in the face of a personal disaster. (For example a house/apartment fire that burns up everything they own.)
2. Put that together with the fact that due to their insecurity you’ll find that – People are risk-averse. (That means they are afraid of risk!)
In their minds they think that if something CAN happen, it’s a certainty that it WILL happen… sooner or later… to someone… somewhere… and what if it’s THEM? (many people are almost CERTAIN that it will be them.) It doesn’t matter that out of the millions of home owners in the US a miniscule (teeny tiny) percentage will have a fire that destroys their home and the stuff they own. It seems to me that most people will spend their entire lives paying for insurance policies and never, that’s NEVER collecting anything back for a “loss.” And even if they do collect on a loss, over their life spans they will pay in far more than they collect – that’s why insurance companies are so profitable. ie the ODDS of them having to pay out more than they collect are non-existent!!! But the insurance industry spends $millions of dollars convincing people that if it can happen to SOMEONE, that someone will be YOU and gee… what would you do THEN? (Thus you NEED insurance, and the siren song of the insurance industry enlists governments to FORCE you to buy certain kinds of insurance and make them rich, and to be risk-averse.)
Actually, in regard to the things that insurance can pay for, if you lost everything in a fire and had no insurance you’d probably do very well. If you have a job, you’d keep getting to work somehow (a co-worker would maybe give you a ride?) and you’d keep bringing “home” your pay. (Where ever “home” is – staying with relatives for a while or in a cheap motel) So you’d find another place to live so you could start visiting the Meca of America (WalMart) to accumulate more junk just like the junk that burned up… only THIS would be NEW junk – all shiny and spiffy! (But the insurance companies don’t want you to figure that out.)
So… here’s the plan… the alternative to the current MegaScam that’s called the “Insurance Industry”.
The government pays for your losses.
No, it’s not welfare. It’s not Socialism. It’s where you pay in an appropriate percentage of your pay from work/business profits/etc to the
US Insurance for Everything Fund.
It would be like a voluntary tax. But you ONLY pay in if you want to collect in the event of a personal disaster. And there would be NO deductable. The government pays for everything you lost… after adjusting the amount for “wear and tear” (ie you don’t get a new 52″ color TV to replace the 19″ B&W set that burned up.)
And if over a period of time the government fund pays out less than it collects, the people could opt to get a proportionate refund of premiums paid in or leave the excess “on deposit.” If the fund pays out more than it collects, those paying in would have to pay more.
Medical care would be paid at 100% (+/-) of government cost with a nominal fee which could be waived for the indigent and elderly – ie model it on the VA Medical Care system. Hospitals and doctor’s offices would have no “profit” – and pay no taxes. Drug companies would be paid for actual expense (including reasonable R&D) – but not a DIME for “promotions” or advertising. There would be NO middle-man insurance companies!!!
And so on. Along side of the government system could be a “private” system that the rich could use if they wanted to. They would pay 100% of their medical bills and absorb all personal casualty losses from all adverse occurances – ie not a DIME from the government, and no tax deductions for medical costs or losses due to hazards.
And the best part of the plan – you would have an individual account and when you die, your family or relatives (your “beneficiary”) gets an amount equal to the total that you paid in less the amount that you collected in insurance “payments” plus interest. (If the govt paid 4% interest and the going interest rate was 6% or 8%, then the govt recovers plan administration expenses via interest payments.) So if you wanted to pay in more than you had to (see above) – you could look at it as being government sponsored life insurance… you pick the beneficiary.
If you collect more in “insurance” payments over the course of your life, then the govt subsidizes your “insurance” and picks up the bill – which would be a form of what is currently called “welfare”. Of course, your family would get no “life insurance” – but hey… that would be an incentive to work harder to provide something for them after you’re gone.
So… we get rid of the predatory insurance industry, and we can stop worrying about risk and the losses that MIGHT come our way as a result of life happening to us.
And my phone stops ringing and interupting my life with BS and lies.