If Auto Insurance Worked Like Health Insurance – Part 2: The Math | Robert Nelson, MD | LinkedIn

Our allegorical illustration in part 1 shows just how ridiculous, expensive and hassle-prone it would be to cover the cost of gasoline, wiper blades and other routine auto services under our auto insurance. Most of us would find a scheme like this unthinkable as it relates to our automobiles.

So why do we tolerate such a payment system when it comes to something as important as our healthcare dollars and choice of providers?

So here is a legitimate question: Just how much more could we expect to pay for auto insurance if it were used in a similar way as described in our story in part 1? 

Here is how I chose to approach the question in order to make a reasonable “apples to apples” comparison.  First, I examined the costs of auto insurance compared to the total cost of car ownership.  Likewise for healthcare, we can estimate per capita spend (actual amount spent on specific medical conditions) and total per capita costs related to all healthcare, including the costs of insurance.

Let’s crunch the numbers and see what we get

via If Auto Insurance Worked Like Health Insurance – Part 2: the math | Robert Nelson, MD | LinkedIn.