Insurance is to provide financial protection from the cost of devestating events, such as one's house burning down, that are very unlikely to occur. Insurance to cover major medical costs, such as organ transplant, makes sense in that context. But when insurance is to cover everday medical needs then it is no longer insurance but is instead a transfer payment system.
If our society is to provide universal medical care as a right of citizenship, as do all the other developed societies, then a payment transfer process where the burden is spread over the entire society and not just those groups receiving the benefits is required. Insurance is not the right model for this purpose.
The right model is one simliar to existing Medicare or Social Security both of which are managed very well for about 4% of the money transfered. Our medical insurance companies do that same job for 14% to 20% of the money transfered as well as introducing inequities for those receiving care.
The medical insurance companies do not add value to the process and as such are a liability and not a benefit. The purpose they serve is to employ people and enrich their owners and executives. The people they employ could be better employed in activities that add value which would enhance our national GDP. As it stands now they are basically receiving disguised welfare paid for by the middle and lower classes.
