Megan McArdle writes for Bloomberg View something we should remember - health insurance is a financial product. It is designed to solve a financial problem.
Research shows it doesn't make us healthier. It does remove or ameliorate a low probability, high impact financial risk - the risk of catastrophic medical bills driving us into bankruptcy.
As McArdle notes, somewhat irrational human biases prevent utilization of the most economic methods of managing major financial risks associated with medical costs. Health insurance - as now constituted - helps people be happier, not especially healthier.
