Been asking this today, curious if folks here can help me out:
Can someone help me understand how health insurance makes sense from an individual/microeconomic perspective? I’m in the US, and if the average insuree saves money by having health insurance, versus not having it, how does that business model work for the insurer?
I can see where paying regular premiums, as a means of amortizing the costs of otherwise abrupt health emergencies, is a value prop - but that also just seems like a matter of budgeting and financial prudence, no? By paying for health insurance, are you buying stability?
I must be misunderstanding something, because as I currently understand it, the average person would, probabilistically, be spending more money with health insurance than without it, otherwise the business model wouldn’t be sustainable. Or is there some positive-sum arrangement?