Why is healthcare insurance so much different from other insurance?

Because your life and health is not a commodity like a car, a house or any other possessions, but essential to your very existence.

I’m not sure why it’s like this, but I do know that the way things are right now, you’re paying insurance to avoid being hugely ripped off in the future. Without insurance, everything hospital related costs an incredible amount (xrays and various scans cost a LOT for the insurance companies). Medication is the same way.

Because your car being sick and not getting treated results only in your car breaking down and needing to get it replaced. Your body getting sick and not being treated results in your death.

Same reason Doctors are paid significantly more than mechanics.

Yes, you’re right. Some people (read, those who collect your trash) are so terrible at managing their finances, that they can’t afford millions of dollars for cancer treatments, or transplants… some people can’t even manage their finances to the point where they can afford an MRI. Consider it only costs maybe 10% of their yearly income, I don’t know what their problem is! Laziness?

Cars are a luxury, good health? Not so much.

@ragingloli – While I agree that health is essential to your very existence, I don’t believe that every time people use health insurance they will die if they do not. Health insurance covers many things that will not result in death if you didn’t have them.

@MrItty @Carmella – the above response also goes along with what you said…

@axlekb you’re only seeing the immediate issue. Because doctors are responsible for our lives, they get paid a lot. Because they get paid a lot, they charge a lot. Because they charge a lot, we need insurance to cover the costs of even relatively minor things.

@MrItty. Okay, so to complete the analogy back to car insurance, you’re saying it is different because the most basic healthcare costs a lot more than getting your car fixed (about $200 minimum per office visit versus $300/year car visit) and because our health is more important than cars (if your car dies it doesn’t really matter in the long run because you’re not going to die).

If you’re car breaks down or gets totaled, it usually doesn’t lead to bankruptcy.

Most people would not see cars as a human right. Many people see health care as a human right.

I’m not sayin’ I agree, I’m just observin’.

Health is something that everyone has (or, if they don’t, really want to have). Cars are a specialty good that some people can buy if they make enough money and want that kind of responsibility.

A totalled car means you have to buy another or be out some money, maybe a year’s wage. Death doesn’t provide just that level of inconvenience. And yes, a lack of affordable health care might not result in death from every health event (like having a cold), but people without health insurance do have a greater chance of dying prematurely from easily preventable causes.

There is health insurance for “just the extreme circumstances” that the OP is asking about – it’s generally called something like a “Catastrophic plan.” They are cheaper (because they don’t cover everything) and they usually have a higher deductible, but if you’re bleeding by the side of the road it will take care of you if they don’t retroactively drop your coverage (like some insurance plans do when you get sick). If you’re young, healthy, and poor, perhaps a catastrophic plan is for you.

However, some people want plans that cover more, or have a lower deductible, so insurance companies offer more comprehensive plans for people that want them. <shrug> There is freedom of choice, and I am glad for that.

@MrItty Insurance is one of the reasons doctors and hospitals can get away with charging so much.

@Val123 Vicious circle.