How Does Insurance Work?

[v1switch]

In theory this is true. However, Insurance companies are "for profit" companies, naturally,, and therefore need to make money on your premiums. They do this by investing the money you pay into your premiums, just like banks do. The burden of your healthcare is not borne out by your "group", but by the profits the company makes on your policy; to be more precise, the profits made on your group's policies. This is why there is an incentive to deny you your benefits.

[Sleeves04]

Jesus, Gary sucks

[Hippodameia]

Nice ad, but what if one of those group members isn't careless and never has to draw on insurance? What then? Their money just goes down the toilet. It's impossible for each group member to benefit equally from this money pool; why don't people direct their hard earned capital elsewhere and just be accountable for themselves? Or, if they still wish to adhere to this "safety in numbers" idea, they could form their OWN insurance group. No middleman needed.

[MrMortgage1]

great simple an effective vid.

Of course the amount you pay for your cover vaires by insurer and this isn't addressed.

You really need to get quotes from multiple providers to make sure you're getting the best deal around.

Sites like cheapest-insurance. info can help a lot with this

[devonneescobedogkck]

Dosn`t matter if you're looking for a cheaper rate or a different coverage plan altogether, we can help

[banstaman]

I think in Gary's case, it wouldn't be health insurance, but more like life insurance. I still don't understand insurance, especially health and auto. I mean most times, you're denied coverage anyway, and that's even if you pay your premiums.

[wongagency]

You can NEVER make a complainer happy. No matter what "they" will always see the glass Half Empty and complain about it.

This video is well put together simply as an education...Period. STOP whining about everything.

[chetdude]

It looks like this screed was created by an insurance company.

They conveniently left out their obscene profits, fat executives with their perks and their armies of claim deniers...

[Poonard]

@chetdude whats funny...if you would rather have social health care. insurance companies would only get fatter, richer, and have more obscene profits. Who do you think is helping write the legislation? lol, don't be stupid man, big companies are here to stay and thats how it is.

[drchrishansen]

HUGE problem! Only explains the risk model - poorly. Health insurance has a fiduciary responsibility to the SHARE-holder not the POLICY-holder. This means that companies are required by law to increase the value of a share over the "public good" Adhering to legality avoiding morality.

Save your money - spend it instead on good food, use that gym membership/equipment that you bought, get some sleep, turn off the TV, and enjoying your family. That is the best risk mitigation!

[Metelex808]

America should just become socialist. So much easier

[sukiannab3ll3]

I agree with it very much as I am a good Example....My Insurance Company pay all my BiLL.....

[exbronco1980]

i hate living in the US

[insurancequotesrus]

Excellent info - thought your use of graphic effective - well done!

[jlee106]

this is awesome.

[damothegreatestone]

hi: new zealand costs: broken leg and pregnancy=$0.00. wake up america

[Metelex808]

what? why is it $0.00?

[Lengo67]

When you sign up for coverage, you join a group of people who help the insurance company lobby in Washington!

[Lengo67]

This is the way it works? Not so fast! Who pays the insurance company's employees? Why doesn't BlueCross/BlueShield pay taxes? How does BlueCross afford to spend $2.3 million on lobbying? My money goes to help my neigbors? Not so! Only a portion goes to helping my neighbors, and another portion goes to paying salaries and lobbyists.

[lilsk8boardcame]

thank you

[BurnsideStudios08]

This is not the American model. Insurance companies get majority of there money from the healthy and when a healthy person gets sick they get dropped.

[InFromTheVoid]

ANd don't the insurance companies sometimes drop people once they get sick?

[InFromTheVoid]

so insurance in voluntary socialism??

By that I mean...From one's one's ability (to pay) to another man's needs.

[sickmint79]

socialism isn't voluntary is it? and insurance is risk mitigation.

[smegmataa]

Capilist healthcare has inherent problems. The population is split into insured and uninsured groups, or into selectively groups (as with private insurance with pre-insurance selection either by the insurance company or the insured) the concept of population solidarity breaks down. Insurance systems must then typically deal with two inherent challenges: adverse selection and ex-post moral hazard.

[smegmataa]

Private healthcare is a problem. The population absorbs the cost of risks to an individual by spreading the impact of incurred costs amongst the insured population.However, if the population is split into insured and uninsured groups, or into selectively groups (as with private insurance with pre-insurance selection either by the insurance company or the insured) the concept of population solidarity breaks down. They deal with inherent problems:adverse selection and ex-post moral hazard.

[nolaeast]

I Like it!!!!

[nolaeast]

I Like It!!!!!

[XFuncCaRteR]

This looks like a piece of viral marketing for the US health insurance industry.

[sickmint79]

or maybe it's an attempt at explaining how insurance works, which few people understand. by your comment i doubt you do either. now that i watched it it's actually a pretty poor explanation though, like the one i would give 5th graders.

[XFuncCaRteR]

This is viral marketing put out by the health insurance companies.

[green0horse]

its called taxes, you pay taxes to have fires put out, and to dial 911. without taxes there is no money to pay these people... its not free

[AmishSexy]

WASHINGTON (Reuters) - Medical bills are behind more than 60 percent of U.S. personal bankruptcies, U.S. researchers reported on Thursday in a report they said demonstrates that healthcare reform is on the wrong track.

More than 75 percent of these bankrupt families had health insurance but still were overwhelmed by their medical debts, the team at Harvard Law School, Harvard Medical School and Ohio University reported in the American Journal of Medicine.

[dlucas90]

Combined consumer purchasing power is the problem, not the solution. If the medical industry were to charge the individual patient, they would not be able to get away with charging so much. Insurance is an unnecessary step in a medical payment. Anything paid for by insurance has astronomical prices, not the other way around. Don't believe me? Who insures the insurance companies then?

[asmetuyasiempre]

staysamrt u r a wimp

[asmetuyasiempre]

i give u a solution for this mess,to obama and all of u,this is so simply that a 5 grader can solve it and play nintendo at the same time,

get $100 a month for each worker this turn on a $240,000,000,000 a year if the hospitals dont want to take care of tthe people, with that money u could build hospitals and clinics and put doctors to work and will cover all.now to fix all of the other problems such as education,job,housing and end with the welfare system rise the minimum salary to a $25h

[Aiden057]

What a piece of phony propaganda. This is far, far, far, from the whole truth. The one thing left out here is of course that fact that a single payer system with Everyone in and No one Left is the most logical, cost-effective and best way to make sure that all are covered. the video fails to mention the corrupt practices of the Wall Street Health Care system, which seeks to exclude as many as possible.

[bearsagainstevil]

yup clearly this video leaves out people with pre-existing conditions and the fact the insurance company is trying to make a huge profit .

Im british and for some things trying to make a profits fine but not for a healthcare system

[sickmint79]

why would someone cover you for pre-existing conditions? if you get in a car accident do you then get car insurance?

[sexking83]

cool video!!!!

[esiosan]

The only thing is Insurance companies jack up the prices to boom profits. The reason they are resisting single payer and not even allowing it to be on the table because there's no way they can make the same amount on money as the current system. In the meanwhile Health care is 2nd cause of bankrupsy in the U.S. after the "recession" started, losing only to home foreclosures, before that it used to be #1.

[thoughtsurfer1]

Single payer works the same way, the people collectively supporting the sick. Except, it's profit-free and mandated for full coverage for all. It answers to the people, not to shareholders.

[warhater]

Yay for Single Payer/ Or else get another/ BAD HEALTH CARE plan! If ReFlubLieRants yell & whine/ We know they're committing a crime/ Against every working woman & man! Let that be our guide/ To get on your horse and ride/ Toward fair national health care/ Get all our money back/ From all the evil hacks/ Cuz they hate the unrich here/ The rest of the earth/ has shown its girth/ With national health care, no debt/ Make it back right/ It's worth the fight/ Or embrace a long costly death/

[networkserver]

some people can be so naive...

[networkserver]

YEA RIGHT Aweiss tell that to my girlfriend

[maanavan]

good video

[hello0787]

are you kidding me with this crap? !?!? You forgot to include how you cancle policies when people are about to have surgery because you don't want to pay your part. Wake up America! Stop letting corporations determine if you die or not.

[ADollarSaved]

People need health care when they need it. Not when greedy execs decide they'll pay off on a claim. Obama's plan gives you a choice: either private insurance, or a public insurance plan like Medicare, available to everyone. AND they all have to play by the same rulesnot change them whenever they feel like. If the private insurers really are all about being competitive and covering everyone, they shouldn't have any problem! LOL!

[Howlinblind]

I advise READ YOU'R POLICY

[pemgolf]

how many deaths are we willing to tolerate

[acnex]

Insurance should be eliminated and replaced with charities.

[mApoll0]

same with socialized med//

[NonsenseTeens]

Great video!

:D

[lapepa712]

You can break your leg being vegan or not.

[dtolab]

LeoHareMusic, didnt u see the example of the tree accident of the healthy guy? the same can happen to you, and treating this could cost more than dealing the fat guys illnesses for his whole life.

[tophergrant]

Not true - Chronic illness usually cost much more than a possible accident. Also, each year more americans die from obesity and obesity related illnesses than all accidents combined. Although it's still smart to be covered if you're healthy, if you have to pick one or the other, it's better pick being healthy.

[LeoHareMusic]

So if I understand this right, this means because I am a vegetarian who works out and takes care of myself but still pays health insurance premiums at work, I am paying for you fat bastards who smoke and eat anything and never exercise?

[Hapinasu1]

Why does being vegetarian have to do with anything? We, as humans, ARE MEATEATERS. It's out nature. In no way does being a vegetarian put you above anyone else.

[LikeYoung]

yeah it does. Go watch something being slaughtered. Then ask yourself if you have the moral high ground.

[outta910]

i saw a deer get slaughtered, or killed, and i sure as hell didnt wanna eat it. but im still not a vegitarian. i like animals, but a steak with a little bit of fat on it is too good to pass up on.

[HolyTrouble]

Lol medical care is free here in finland. All the moneys are taken from taxes.

[aweiss]

So... it is NOT free.

[cinaltoids]

So then its not free, you and everyone else is still paying for it.

[jrubin22]

And Health Insurance companies can increase their profit by finding a way to refuse coverage :) That makes shareholders happy which keeps the Board of Directors happy which makes the CEO happy :) If Gary can't get healthy, he'll lose his job, then his policy will sunset and he can go on MedicAid so the taxpayers can pay what the insurance company was able to avoid :)

[aweiss]

Actually almost all denies are from HMOs government backed companies. The free-market ones don't really get much denies.

[heaty007]

aweiss- let me ask you this... why should anyone get denied? huh. We have put a price tag on human life. I have been paying my insurance premium like a good citizen and i needed my wisdom teeth pulled. my deductible is so high that i still have them and i'm forced to live in pain. Isn't insurance ment to be there because I can't afford a large med bill all at once? 2. My wife had a baby and my deductible & copay $9000 for 2 nights in hospital. so this system is a mess! Go watch "sicko"

[wwwYAWEZcom]

That was incredible!

[ItsPrincessAnn]

hehehe funny the way he falled

[canceladorox]

haha yeah and "and he's promptly hit by a falling safe"

[spalderz]

this video is missing something..it doesn't show the money that goes straight to the pocket of the insurance company to make them rich

I know some people who are very rich because they work for insurance company..and of course, the company sucks because they don't have much money to spend when people make a claim

[Phantasmvlog]

Simple explanation. The video didn't address the fact that insurance is a for profit business.

[crrlm8]

Doesn't insurance help drive up costs in the first place? Never understood it?

[airandfingers]

This video is a really good explanation of health insurance. Health insurance doesn't drive up costs.. Did you watch the video?

[Joey2Tube]

Free Health care is the worst thing. Free isnt good. Just look at our free public school system Its failing Catholic Privates school which is the 3rd largest school district in California Manages to Graduate 70% of its students and does it with much much less money. Public school systems on graduates about 40%

[eviltwin777]

Unfortuantly his health insurance company denies him for a stupid excuse about experimental leg casts or something like that and he dies two weeks later. Universal is better something like the french or the english have will be great but HMO's that's BS all they care about is money. Also Humana is no different there all basically the same.

[SuperLoserUYA]

Hi Aussie

[Maplesyrup41]

american system is fail

[JoshSkelton]

How it worked for my family: We paid expensive monthly premiums for years. Then when illness struck a member of our family we got fractional reductions on $thousands in crippling health care costs. All while continuing to pay premiums, which always exceeded what little was paid for us during any given month. Thanks tons. American health care is a racket.

[Labbestuss]

Watch Michael Moores "Sicko". Poor americans, you should have a much more cost effective and friendly healthcare system totally run by the goverment. We have that in norway and its excellent! Britain and france too! (Almost) free healthcare for all!

[GoblinGuide]

Michael Moore is a Joke. Who do you think is going to pay for this free health care in America? ME! The hard working middle class that pays taxes to support poor lazy people

[froggernewbie]

at least we dont die waiting...

[ericvan001]

or you could live anywhere else in the world where your government pays for your healthcare.

[ooolong9]

so how come my sisters er visit for her dislocated surgery cost more than my husband having angeo-scope on his spleen and cat scans and 3 days in intensive care?

[ezjisalive]

Public health care is the way forward for America!! Private corps do it for the profit, government does it to keep you healthy!

[pongman]

This commercial is attempting to tell us the wonders of insurance because they are afraid that President Obama will cut their profits and start legislation to gear up for national health insurance. If we had national health insurance we wouldn't need these middlemen, and the CEO would be out of a job.

[GRABA85]

Humana forgot to say that they make money on it. It is not group of people who are helping each others. It's a business. Companys like Humana earns money when they pay as little as they can.

[pongman]

What the insurance companies fail to tell you is that when it was just Blue Cross and Blue Shield, the insurance companies only kept seven percent for administrative cost and the rest went to healthcare. Now it's more like ninety-three percent for administrative cost and seven percent for healthcare. ie. CEO's make hundreds of millions in bonuses.

[tooosweeet]

propaganda

[k9girrl]

Humana ... a Health Insurance company ad .. how ironic.

[Cruve01]

I am one of those guys that have always loved America.. but seriously the Insurance system gotta be the worst ever.

[tooosweeet]

I knew this was made by an insurance company. This video only demonstrates a not for profit system. This is not how insurance companies work.

In reality insurance companies are profit driven, where the goal is to deny people's care when they need it, while padding their pockets.

They want everyone to be insured only because they are a business, a business of taking everyone's money, not protecting people.

[tManHere]

Just live in the UK. Free healthcare...

[pekkaonkoodari]

yeap. healthy people pay for the sick. how about the poor who don't money for the insurance? in your perfect free world, who pays for them? i'm guessing no one..

[loch75]

What a scam!!!

[marburg666]

OR you could use taxes and do exactly the same thing and not need to siphon profits off for shareholders and CEO salaries. Who woulda thunk.....

[jonniebgood]

lol, desperate attempt to save a failing system. good try humana, you better watch out, the nasty socialist boogey man is about to cut into your pockets.

[VAR1UM]

Sounds like socialism to me. Only voluntary. My only concern is, if i pay insurance my whole life, but only end up spending a 1/4 of it, shouldn't i get that money back? Why do i feel like im "spreading the wealth" around?

On a different note, i think the economy needs to fail. Its the only way my cheese will go from $4.00 a block today, to $2 a block tomorrow. I needs my cheese.

[jonpsfromthegate]

hahaha, America loses, NHS wins!

[yipwingtim2568]

How possible for a guy who was hit by 5 trees and then jump off the cliff would get minor injuried? He should have been a dead man...lol

[fnordly]

this video left out the part about refusing to cover whole classes of people, suing claimants, kiting the premiums, and also the part where they take the money and invest in subprime backed securities to make fortunes for themselves, until it all collapses and the taxpayer bails them out, and too much other stuff to mention

[gforce7777]

That's great but you forgot to put most of those little dollar signs in the pocket of the CEO of the insurance company.

[5uper5tring]

propaganda from a health insurance company. Don't be fooled, they are sucking up a third of health care dollars and lining their own pockets. Medicare only sucks up 1/25 th by comparison.

[shehzad27]

gary unfortunately may not have been covered for "everything", and those humana jerks will make him go bankrupt through some loopholes. And if you are healthy, you will just help pad the pockets of Humana's ceo.

[1kr]

awesome, he knows how to spell it correctly!

[crocodile2006]

This is all about "spreading the wealth around" to you socialist republicans.

A much more efficient way to have health insurance is where everyone pays a government body a small amount. That way you eliminate shareholders who only care about their next dividend.

[ilm444]

universal healthcare, huh, cute hands?

[y2knoproblem]

So health insurance is a Ponzi scheme. Thanks for the info.

[SamHj08]

so...Socialism basically?

[CROWDUDE]

Yeah but... the healthcare system doesn't work in the US.

[element91skate]

fend for yourself

[berriesandkelly]

america= FALE

[umybitchnow]

so is your spelling.

[jezuzfreek777]

At least Americans cane spell fail.

[CalabusDabus]

Your spelling = FAIL

[escape889]

your existence= FALE

[hiddeninja]

wow...spell it right FAIL*

[smartalek79]

spelling fail!

[NewNuma]

What they DONT tell you is that those medical costs were inflated BECAUSE of insurance. It is a money game. More people pay in, insurance has more net spending capital (they always keep their % cut), and prices go up to meet the surplus. Insurance is socialism and it costs us ALOT for their sales pitch of "safety".

[tallneil]

Sdaly you missed the key problem. The company is beating that the users will pay them way more than they ever payout. Their goal is to not payout and so private healthcare doesn't work because its aim is to help the sick as little as possible.

[PopeSnowball]

Agreed, its all about profit.

[jmoney13000]

what are system needs is some government intervention( yeah i spelled it wrong? AND!)

[ninjaofthepie]

im smarterter now :]

[mardepz]

me two

[charriejoybundaon]

i dont want.. i dont want to .....

[legend1972]

Great video, a fun way to illustrate a complicated matter; Easy to follow and it makes since to me nice work

[talon20]

ok this doesnt explain that the companies only choose the healthy people and keep the rest of the money. so realy the healthy people pay for no one.

[kmb86]

health care companies are still COMPANIES. they're trying to make money. If there's a lot of sick people with health insurance, the health company has to pay more money to help the sick person rather than keeping that money for themselves.

[ugabandit7]

yeah, there is a big conflict of interest. Insurance companies make money when their customers get shafted.

[shaochiavang]

its all about the MONEY

[greenfrogy44]

boo!

[oakd9]

"sounds like socialism to me". it already is. you think the average person pays enough in taxes to cover their use of police, roads, public parks, fire department, military, bridges and other state paid emergency services? if this rapper is rich he already pays for poor people. you know how much a jet fighter cost? something like 10-20 million. how much of that do you pay. and how much does bill gates. hes just returning the tax rates to where they were before Bush took office.

[CrocodileMonkey]

When we had a $560 billion dollar surlpus, if I may add.

[qkr19]

have SEEN sicko?

[philoucool69]

United-States...what a total failure.

[123Away098]

well guys insurence is a risk. Its good when you are sick and unlucky. But what if i dont want to pay it? well goverments all over the world knows better and decided to make compulsive

[FlyingC4r]

What kind of person goes skiing when his wife is about to have a child

[thinker0110]

AND your insurer uses scientifically gathered data to MAKE CERTAIN they can take a big chunk out of the pie for themselves, which is called profits, and that part doesn't help anyone get less sick. In fact, the less that insurance companies can manage to pay for your sick family, the more money they make! This is in opposition to SOCIALIZED healthcare, where money is used to help people, instead of for advertising and executive retreats.

[niagafall]

the theory is true, the reality is insurance companies will do everything in their power NOT to pay a claim. If you didnt follow their instructions to the letter, guess what "sorry you're not covered". Saw a doctor at an ER not covered by your plan ? "sorry not covered".

Nowadays I basically automatically assume that anything I need health insurance for will at least be partly not covered , and pretty much this is always the case.

[Liquidemblem]

I live in Canada so..... this means nothing to me lol

[authillin]

The same principle applies to the Canadian system. Imagine the Gov as the insurance provider and our taxes as the copay and deductible. Since every Canadian is a member of the same insurance policy it is, in theory, cheaper for the average Canadian than it would be were there many independent health care providers competing.

[directedbydavid]

Humana is pure evil

[stee1face]

This is how insurance works: IS A SCAM! is legalized mafia.

[Krazyness]

but mafia deals with drugs guns illegal activity and murders

[TimLoganKnows911623]

One payer system is the only way to go.

Private health insurance is a private tyranny that only exists in United States. It's a rather barbaric system that tells you you're health is only worth what you can afford.

People in United States should get behind, and support, HR 676. If you don't know what it is learn about it! GM & Ford are going bankrupt because of the rising cost of health care. If United States had single-payer system, the companies wouldn't have to worry about it.

[swirledpeacat]

I live in the UK, and Whilst the NHS isn't perfect I, and I'm sure most other UK citizens, would NEVER put my health in the hand of a greedy insurance corporation. A nation should protect and care for it's citizens, this should be what we expect in return for paying taxes and abiding by laws. Instead people are flogged off as a commodity.

[littleshawty123]

why are cars so expensive?

[treavortv]

NOT THE WHOLE TRUTH. As usual, more lies.

[treavortv]

oh wait, unless you have a pre-existing condition... then you don't get health care at all! AND even better for a greedy company like HUMANA, they can troll through your old medical records if they don't want to pay an existing claim, find a trivial illness, cite you for not declaring it, then cancel your coverage...

WELCOME to AMERICA

[Qabz]

What happens if for some reason everybody needs to claim, eg (epidemic etc)? What happens to the pool of money?

[rocketkev]

Thanks god dont have to worry about insurance!

Free health care here in Canada!

[michalski1976]

There's no such thing as "Free health care". Wages, drugs and equipment cost money, silly Canadian. BTW whole world knows canadian "postponing" operations system. Patience is good ... especially when fighting with cancer :(

[MosesMayonnaise]

i love your penmanship!

[JustJenFelice]

Quick answer: IT DOESN'T (at least in America)

[frustratedscreenwr]

But this forgets to say that the insurance can come up with reasons not to pay. For instance, a bogus pre-existing condition.

Also, an insurance company can decide not to insure you at all because of your bad health.

That's a one payer government system is the way to go. Everyone is insured for all conditions. Because you have such a big group, the costs come down.

Not having a for-profit insurance company involved also brings costs down.

This system works quite well in Canada and Europe.

[123Away098]

belive me the system doesnt works quiete well in europe. In Poland (and many other countries) the system will bancrupt in 20-30 years

[SiAlice]

what is everybody of that insured group get sick? then where insurance company will get money for all of them?

[mommytoava]

You are talking millions of people within that group getting sick. Depending upon which insurance you have, like most people you are with a large company therefore they have millions of people paying in. So it's very unlikely they would all get sick at the same time.

[brainzaz]

they ask the tooth fairy, duh

[shivajesus]

This vid is NOT "how DOES insurance work?" It is "How SHOULD insurance work!" where are the CEOs? what about the commitees and HMOs? the problem with US healthcare IS insurance companies & "for profit" hospitals! The solution IS NOT more or forced insurance. The solution is running insurance companies and "for profit" hospitals out of the system.

[inofulwell]

Amen! It is how insurers want you to THINK it works. LOL

[joelito101]

You're right, they forgot to mention how much money ends up in their pockets.

[imartsy]

love the "safety in numbers" with the dinosaur :)

[skish]

This is greeat!!! Thanks so much!

[xxxrunexscapexxx]

Great video! Interesting and very imformative.

[DSzx]

good video :)

[Radianation]

Great video!