To the Journal editor:

Many believe buying insurance is preventive. It isn’t. Insurance is a financial instrument designed to prevent catastrophic financial loss. Car insurance does not prevent automobile accidents.

We pool our money with other car owners to buy insurance hoping we never need it. The insurance company invests the money to increase the funds by benefitting from corporate profits. In the event of an accident insurance offsets repair costs, covers medical expenses and protects against liability judgments.

We can reduce the amount we pay buy choosing high deductibles and companies which reward good driving records with lower premiums. No one expects insurance companies to pay for routine expenses such as oil changes or replacement tires. A policy covering everyone’s routine expenses would require exorbitant premiums.

Medical insurance works the same way. Buying health insurance does not guarantee good health. We do that by maintaining a healthy lifestyle. Regular exercise, good eating habits, not smoking and not texting while driving are examples of behaviors that lead to good health. Of course regular medical check-ups are part of a healthy lifestyle. But you don’t need insurance to see a medical professional, it merely offsets the cost.

A free market system allowing health savings accounts for routine medical expenses would enable consumers to shop for the best deals and drive down costs through competition, just as in the car insurance industry.

Catastrophic policies covering accidents and other major medical conditions, such as cancer, could be purchased at competitive prices. Employers could fund HSAs and pay for catastrophic policies as an employee benefit. The self-employed could shop for their own, much as is the situation now.

One thing insurance cannot do is cover pre-existing conditions. Car insurance cannot cover someone who doesn’t purchase insurance until after an accident. That is not insurance. To prevent unaffordable premiums, pre-existing conditions must be covered outside an insurance system. A national high-risk pool funded by taxes would be required to cover those who cannot care for themselves.

A government plan mandating insurance coverage for everyone and everything will fail. A successful health plan will rely on individual responsibility and good health habits, the free market and consumer choice to limit costs, catastrophic insurance plans to cover major medical expenses, and a taxpayer funded high-risk pool to cover the costs of those unable to care for themselves.

Fat chance of that ever happening.

Brad Stried

Gwinn