Thomas Ostrem Ch.5 Question 4

The author proposes a solution to the challenges that private health insurance companies face. "Insurance is about getting the numbers right" (Wheelan 112). Insurance companies will calculate the average of cost of treatment per person and charge a premium that is a little more expensive than the average cost so that they will make a profit in the end. In short, the people who are the healthiest end up not buying health insurance because it is a bad deal for them. The the sick people remain with the insurance coverage and the insurance company looses money because they have to provide health care for the health problems of the sick people. The problem with health insurance is that we know who is sick, we know a little about who will get sick (genetics), and sick people are expensive to take care of. The author offers a logical health care reform solution to make health care both more accessible and more affordable. His solution also and still allows for insurance companies to make a profit. He offers a solution that everybody should be required to buy health insurance whether you are healthy, sick, young, or old. In a way health care expenses will be shared. Insurance companies can make a profit by making more money from healthy people than the money they lost from covering the sick people.