The purpose of insurance is to provide financial protection against unexpected losses. In simple terms, it helps people manage risk.
Here’s how it works and why it exists:
- Risk Sharing – Many people pay small amounts- relatively (premiums) into a common pool. When one person experiences a covered loss (like a car accident, house fire, or medical emergency), the pool pays out to cover the costs.
- Financial Security – Insurance helps prevent a single event from causing financial ruin. For example, health insurance can protect you from huge medical bills, or home insurance can help rebuild after a fire.
- Peace of Mind – Knowing you’re covered if something bad happens reduces stress and anxiety about the future.
- Economic Stability – Insurance supports society by keeping individuals and businesses financially stable after losses, so the economy keeps functioning smoothly.
In short:
Insurance exists to spread risk, protect assets, and provide peace of mind when life’s uncertainties strike.
When health insurance is required to violate the idea of protection against unexpected losses, it is no longer insurance.
For example, birth control pills, or a routine office visit or even routine dental checkups are not unexpected losses or a significant financial risk that can’t be planned for. Requiring them to be reimbursed by insurance simply drives up premiums for everyone.
The use of deductibles is another way of sharing the risk. The lower the deductible the higher the premiums for everyone. On the other hand, a deductible transfers a bit more of the risk to people who more often use the coverage.
In many respects health insurance long ago ceased to actually be insurance.
QUINNSCOMMENTARY 
“In many respects health insurance long ago ceased to actually be insurance.”
Agree.
When it comes to health “insurance”, unless everyone is required to have coverage, all the time, the all in the pool concept won’t work.
Similarly, the Democrat’s solution of having some pay while others benefit, allowing people to join after a bad diagnosis, expecting hospitals to treat those who are uninsured (stabilization and beyond), all create moral hazard. Today, exchange based coverage, and Medicaid, with all its exceptions, is like allowing people to insure a house that is already on fire.
As the excerpt you posted confirms, Democrats misrepresent what Medicare For All means, they believe there should be a single pool, where someone else pays.
So, again, unless everyone is required to have coverage, and everyone must pay based on the risk they are shifting into the pool (what they call insurance), the Democratic solution of subsidizing some and sending the bill to those too young to vote, and generations unborn, is nothing more than buying votes.
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