2. What would health insurance that actually functions like insurance look like?
Let’s remind ourselves what insurance is supposed to be for: Large, unexpected, costly events. You pay premiums to cover those costs and pay out of pocket for routine, inexpensive, and predictable costs.
Car insurance is the classic example: You pay insurance for when you get into a major accident. You don’t use your insurance to pay for routine and expected costs like gas, oil changes, and tire rotations.
Let’s also remind ourselves how health insurance differs from normal insurance: It covers routine, inexpensive, and predictable costs. In fact, health insurance is mandated to cover those things (see: the Affordable Care Act). Routine doctor visits, laboratory services, preventative wellness visits, and vaccinations are mandated as Essential Health Benefits (EHBs) that all individual and small group health insurance plans must cover. Various preventative measures have no deductible to enrollees.
The unpopular truth is that health insurance in America covers too many things. Health insurance is largely about pre-payment of care. All health care shouldn’t go through health insurance. Premiums and deductibles are high because everything goes through insurance.