There are millions of uninsured people in this country. A large number of those people are between 19 and 39. These people go without insurance for a variety of reasons – some financial, some because they do not think they will need it, some because they dont know better.
Now, Wellpoint is offering a product called Tonik. It is health insurance aimed at these people who do not have health insurance, but are relatively healthy. The premium is very cheap and it provide coverage after a pretty high deductible.
Some people, like the Indiana State Insurance Commissioner are praising the product. Meanwhile, in California, Mr. Garamendi is calling this a “cherry picking” product designed only to profit the insurance company.
Yes, the insurance company is going to make money on this. If they were not going to make money, they would not be offering it. But, it also provides insurance to a group of people who otherwise would be without. Picture the 22 year old just out of college who is skiing and breaks a leg. If this person has insurance, great. If they dont, you and I will pay his expensive hospital bill.
I am all in favor of any product that makes health insurance more available. If you do not have insurance, you should check this out.