I wish that was the way private insurance companies make money. Unfortunately, every time a person files a claim that becomes a ‘loss’ to the insurance company, as opposed to profit… this is why people with chronic conditions get denied coverage due to a practice called ‘rescission’.
articles.latimes.com/2009/jun/17/business/fi-rescind17
“Blue Cross of California encouraged employees through performance evaluations to cancel the health insurance policies of individuals with expensive illnesses…”
““These practices reveal that when an insurance company receives a claim for an expensive, life-saving treatment, some of them will look for a way – any way – to avoid having to pay for it,” said Stupak, chairman of the commerce committee’s Subcommittee on Oversight and Investigations.”
This is one thing that illustrates that we badly need health care reform in the United States.