Felix Salmon, in his blog post Conditional probabilities and evil insurers, sees it as a risky one... you have about a 50% chance of collecting (and a 50% chance of getting nothing) if you get really sick.
"if you’re making a series of small payments now on the grounds that you will be paid a large sum of money if something bad happens, you’re running some large and unhedgeable counterparty risk"The Taunter article (unconscionable math) which he refers to is a clear analysis of health insurer's rescission methods. ie - real and sad and borderline criminal.
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