Originally posted by quackquack
......Insurance however is different. It is regulated in such a way that certain higher paying groups are forced to subsidize lower playing groups.
It really depends on the frequency a particular group accesses the health care system for that to be true.
For example if you look at a level of cover pyramid, you will probably find the greatest number filling the lowest rung. You would probably find them on average to be younger, less wealthy, but also less likely to access medical services. As you go up the steps in this pyramid, you will probably find the the higher rungs are filled with less people in total number, but who are also, more wealthy, older, and much more likely to require medical help which will also probably cost more for each assistance event.
So in essence the opposite is more likely to be true. The larger numbers at the bottom of the pyramid who by virtue of their youth are probably far less likely to require health care are the bread and butter of the health insurance funds. The bottom are more likely to provide the greatest nett proportion of income stream into the system that actually gives the insurers the capacity to be able to offset the cost of providing services to the more frequent need for medical help, the more afluent, typically older, typically more highly insured top tiered consumer exacts from the system.
** This argument is based on the simple assumption that all things being equal wealth tends to increase with age, as does concern for ones health, as does ones need for more costly medical interventions.