Well, you pay into the pool and it has to be self-sustaining. All insurance is like that. On the house insurance, I may never get one single penny back for all the money I put in.
And with my car insurance, I’m a demonstrated good driver so I’m pretty sure I’ll never see any of that money again.
It turns out - that on both of those things - all I’ve done is pay for everyone else! What a deal!
The whole purpose of insurance is to have the insured pay someone else (an insurance company) to assume the risk of a financial loss that would be devastating to the insured but is not likely to happen frequently (if at all). That's why someone who pays for auto insurance or homeowner's insurance for 25 years without filing a single claim doesn't complain about it ... they paid for 25 years of peace of mind.
With a medical plan, claims are often filed with such boring regularity that the plan doesn't remotely meet any objective description of "insurance." The whole purpose of a medical plan is to take a huge group of people with enormous medical expenses and lump them into a pool with a smaller group of younger people who are conned into paying far more than you could ever justify in a real risk-managed insurance pool.
Correct you are, but my point as it would apply to your home and auto insurance is this:
If the federal government mandated that
all home insurance must include the provision for
a “free annual home inspection” or “free hail damaged shingle replacement”;
or all auto insurance must include the provision for
“free quarterly oil changes” or “free windshield replacement”;
then your premiums would have to go up to cover the cost of
all that “free stuff” whether you intend to take advantage of it or not.