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The nature of insurance is that it spreads the risk of loss of a given occurrence over a large number of people. Private insurance funds the payment of losses through the premiums collected from its policyholders, earnings on its investment, and through other means. One of those other means is by transferring some of the risk that it assumes to other private insurers that are called "reinsurers". Reinsurance is essentially insurance for an insurer and is intended to either add to the financial strength of the insurer or to help cover the catasprophic losses (there are several types of reinsurance that are too complex to discuss here).
What you are essentially asking is whether a proper role of government is to act as a reinsurer. To answer that question, it is important to understand that government does not create wealth. The only source of money that the government would have to pay catastrophic claims is by taxing the public, or by printing money. In my humble opinion, further taxation places an undue burden on the public, and printing additional money necessarily results in inflation.
In sum, therefore, the government should not provide catastropic loss insurance.
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∙ 10y ago
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Seniors Need Catastrophic Health Insurance?
We all want to believe that we will never be affected by a catastrophic health event. However, we all know as we age that the chances of a debilitating stroke, degenerative disease or other lingering catastrophic illness is quite possible. Senior citizens should research catastrophic health insurance or talk to an insurance provider. Medicare and regular health plans do not have the resources to provide the long term care that is needed in these cases. With catastrophic health insurance, senior citizens are better prepared for whatever the future holds.
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No.
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yeah they should but i dont think that they do
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bithces
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Absolutely . They should provide it .
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