Congress does not know what insurance is or why we buy it.

In the background, while I’m working, I’m listening to the debate in congress over the current health care legislation. What is very clear to me is that both republicans and democrats have no idea why we buy insurance and why it should not be an entitlement or mandatory.

Insurance is a product we purchase to manage risk and it’s something you buy hoping to never use. We use insurance to manage risks from fire, flood, auto accidents, theft, and yes, injury and disease, and more. If your risk is high you pay more. If your risk is low you pay less.

Congress is not debating insurance. They are debating medical payment plans. The solution to this issue is simple. Open up Medicare to everyone. Let those below the age of retirement pay more into Medicare and utilize it’s services. Do not make it mandatory and allow people to buy in after they get sick or injured. Medicare, because it is a government funded health payment plan, cannot discriminate against pre-existing conditions. Let people who don’t want Medicare to buy their own insurance. Insurance companies are private entities and should be able to mitigate risk by charging more or denying pre-existing conditions.

Problems solved. You’re welcome.

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