It's A Matter of Simple Math

Insurance companies are for-profit businesses. To survive, they must take in more money than they pay out.

Intake > Pay outs

How does an insurance company get money? 

Premiums!

They also off-set their costs with deductibles and co-pays.

So what have we learned?

It is simply NOT possible for the cost of insurance to be less than the benefit for the majority of people. 

The more people who have insurance and go to the doctor, the higher the cost will be to be insured for the majority of people. It HAS to be!

Imagine going to a potluck dinner. If every family brings as much, or more, food than they consume then everyone will be able to enjoy a nice meal.

But what if you had a potluck and each family of four people brought a single serving of food?

If five families, each family with four people, brought one serving of food you would have 5 servings to feed 20 people. Is that sustainable? Of course not!

The same goes with health insurance. If each family pays $100 a month in premiums:

$100 x 12 months = $1200

but each family only has $1000 of medical expenses, is that a sustainable system? Of course!

Let's say we have a pool of 10 families:

$1200/premiums per family = $12,000/ total premiums collected

Each of those 10 families incur $1000 of payable medical bills = $10,000.

Intake          >           Pay Out

$12,000.                  $10,000

Wanting everyone to have healthcare is a wonderful ideal that I'm sure in a perfect world the majority of people on both sides of the aisle would love to be able to provide.

BUT...

Let's say we add 2 families that can't pay for insurance and have health issues costing $2500 a year each for a total of $5000 a year.

Now the intake for all 12 families is still $12,000 but the pay out is now $15,000.

Is this still true? 

Intake           >             Pay Out

NO!

Intake                          Pay Out

$12,000                      $15,000

Is this a sustainable situation? Of course not!

Even if the federal government kicks in $2000, there is still a $1000 deficiency. The only way the insurance company can break even is if they charge those initial ten families an additional $200 each.

Is everyone insured? Yes.

Is this a better situation for the majority of people? No!

And that is why Obamacare will never work!