Costs Versus Health
Because insurance is all about risk, insurance companies make the most money on people who present the least risk – those who pay their premiums but don’t use much healthcare. That generates more profit for the company.
People who have chronic diseases or conditions, those who have unanticipated medical expenses (ER visit, surgery, hospitalization, serious disease diagnosis, etc.), and those who are more likely to have health problems due to advancing age cost insurance more money and affect the profits of the insurance companies. People with serious health problems and limited coverage find themselves with large bills that the insurance companies will not cover.