Costs Versus Health

Because insurance is all about risk, insurance companies make the most money on people who present the least risk. People who pay their premiums but don’t use much healthcare generate more profit for the company.

People who have chronic conditions, unanticipated medical expenses (ER visit, surgery, hospitalization, serious disease diagnosis, etc.), and advancing age cost more money and affect the profits of insurance companies. People with serious health problems and limited coverage find themselves with large bills that insurance companies will not cover.