Insurance has followed a similar path, and shares more than a few  
similarities with the lottery. The two businesses hire from the same  
pool of actuaries and employ them to rig similar “games.”
To
 survive,  insurance requires the vast majority of people to lose most 
of the money  they put into it. It’s a gamble that instead of asking 
people to  imagine the possibility of a jackpot asks them to imagine 
something  quite the opposite.
That’s why insurance is much more successful than the lottery, causing 
U.S. citizens to spend about a 
trillion dollars a year on it instead of the relatively modest $
70 billion of
 the lottery. In the end, people hate losing things a lot more than they
 like getting things.
The economic term that describes this phenomena is called “loss  
aversion,” which means people respond disproportionately to gaining $100
  versus losing $100.
If a phone company raises its 
monthly cost, more  people leave than would join if they lowered rates 
instead.People just  hate losing things once they have them.
This is also why people tend to overvalue their own possessions—a  
similar phenomenon titled “the endowment effect.” Ziv Carmon and Dan  
Ariely asked owners of NCAA Final Four tournament tickets to predict how
  much they could sell their tickets for.
The 
predictions averaged 14  times higher than the average hypothetical 
buying price.
So while people are much more vulnerable to the rhetoric of insurance  
than the lottery, both succeed by convincing us to believe in a  
fundamental deception. In the lottery’s case, people are willing to  
throw away a few dollars at a time so they can imagine the bliss of  
winning.
Because the average lottery user’s day-to-day 
stresses and  dissatisfactions are generally situated around money, they
 believe that  obtaining a vast sum of money all at once would solve 
most of their  problems. But this does not seem to be the case.
Several studies have explored the surprising dissatisfaction of lottery winners. 
One study
  compared lottery winners with people who became quadriplegic around 
the  same time, and found that the lottery winners were no happier and 
took  significantly less pleasure in simple beauties.
A lot
 of people are  buying tickets just for the chance to imagine a 
happiness that does not  seem to actually exist.
The lottery doesn’t succeed because people aren’t good at calculating  
probabilities; they know they have almost no shot at winning. It  
succeeds because it convinces us to believe in an inaccurate equation:  
lack of money causes stress, stress drains happiness, therefore more  
money will mean more happiness.
A similar 
miscalculation takes place with health insurance. The  average person 
assumes good health equals medical care, and medical care  means access 
to care, which equals health insurance. Or, in the other  direction, 
health insurance means access to care, which means good  health because 
it mitigates the risk of disease and injury.
 But this also does not seem to be the case. People with health insurance are 
no more likely to  be healthy than people without it.
The
 vast majority of health is the  result of personal lifestyle, genetics,
 and environment. Health-care  services account for less (possibly much 
less) than 10 percent of your  actual health.
This means access to health care has very little to do with what  we 
think it does. The national debate about health care has focused  around
 what Brent James calls “rescue care,” or the imperative we feel  to 
save a life no matter the cost.
This is the dramatic 
rush to the  hospital and end-of-life care.
This sort of care has not actually increased life expectancy for  
several years. It is miraculous and wonderful, but it won’t make us live
  any longer or any more healthfully.
But, as with the 
lottery, Americans  continue pouring their money into a system that does
 not actually  perform.
If, instead of focusing on a few rare cases, we spent our money  
improving our lifestyle—buy a better chair, change unhealthy habits, or 
 (as some studies suggest) even meditating—our overall life expectancy  
would dramatically increase.
 But instead we continue 
to believe a false  equation.
In 2014, U.S. lotteries raised more than $70 billion. This  number is 
astounding because it suggests the average person spends $220 a  year on
 the lottery. But that’s assuming the price is evenly  distributed 
across all people. We know children aren’t participating,  and in 
certain states the lottery is still prohibited. So for those who  play, 
the average is much higher.
Several studies have also shown that poorer counties spend twice as much
 as wealthier counties.
In 
North Carolina the poorest counties produced
  $400 per person per month. That’s $4,800 a year. If those same people 
 invested that money in any number of ways, they could have more than a 
 million dollars by the time they retired.
That’s winning the lottery. So  just imagine what could be done with the
 much larger amount of money  that is now being pre-allocated (before 
it’s needed) to a host of  medical services.
Over 
time, lotteries have had the same basic story line, and health insurance
 now fits right in:
"The state legislates a monopoly for itself; establishes a state agency 
 or public corporation to run the lottery (as opposed to licensing a  
private firm in return for a share of the profits); begins operations  
with a modest number of relatively simple games; and, due to constant  
pressure for additional revenues, progressively expands the lottery in  
size and complexity, particularly in the form of adding new games. (
National Gambling Impact Study)"
Insurance has followed a similar path, beginning as “
friendly societies”
  and ending in nationalization—Obamacare. The nationalization is 
natural  and even necessary. In England, early insurance agencies 
offered fire  insurance, which meant homes were monetarily and 
physically protected  because the insurance agency also ran the fire 
department.
But insurance companies drew criticism when
 they refused to put out  the fires of homes whose owners had not 
previously purchased the  insurance. This is an example of market 
failure. If the insurance  company did put out the fire, then no one 
would buy the insurance.
The way to make sure all the 
fires are fought is to pay for a fire  department through taxes. This 
way everyone pays into the insurance and  every fire is extinguished. 
Today the same thing has happened with  hospitals. A lot of people won’t
 pay for insurance if they can go to the  emergency room and still get 
help, help that the hospital is required  to give whether they’re paid 
for it or not.  
So we turn healthcare, like  the fire station, into a “
tax”
 that stops people from getting a free ride.
There is certainly some utility here, so insurance ought to  exist and 
it probably ought to be governmentally run, but the chance of  you 
ending up ahead is about as likely as your house catching fire. A  good 
health insurance system would be like a good fire station.
You
 call  them when you need them, but most of the time you get your own 
cat out  of the tree.
That means low premiums and high deductibles. But that’s probably not  
what will happen. If this progresses like any other lottery, we can  
expect it to just get bigger, advertising higher and higher “jackpots”  
(bigger, all-inclusive packages) because as the government gets involved
  in the business it will be under pressure to sell ever-increasing and 
 ever more inclusive health-care packages.
They’ll be 
tempted to insure  more and more services, “to invent new games,” and 
“additional  revenues.”
But if our goal is to encourage actual health improvements, we will  
need to devalue insurance, cut down traditional health-care spending,  
and create policies that turn people away from doctors and towards  
things that have a much larger impact on health. We have to find ways  
to, as Dr. David Blumenthal says, “Invest our health-care dollars in  
ways that will allow us to live longer while enjoying better health and 
 greater productivity.”
The biggest lie health 
insurance tells us is that it’s a way of  mitigating risks. Bad habits, 
low exercise, poor hygiene, genetics—those  are your largest risks, and 
health care has proven to be very  ineffective at dealing with those 
risks.
If we want to encourage people  to live longer, 
healthier, and happier lives, the best thing to do is  convince them to 
eat well, sleep enough, and go to the gym rather than  pumping their 
money into a system that will only produce yet another  ineffective 
doctor visit.
But we want to believe doctors can take care of us. It’s sure nice to 
imagine, so we commit to buying another ticket tomorrow.
Note Almere-Digest : 
hopefully some of Europe's "new" privatized insurance schemes  (like that of the Netherlands)j will not be not taking the same route as that of the US Insurance Industry? 
Almere-Digeest
For the complete report go to : Why Health Insurance Is Like Playing the lottery
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