So today, Obama tried to disavow his failure of his namesake legislation, Obamacare. No matter what, Obama owns the turd that is Obamacare. 

Of course, Obama tried hard and succeeded to get Americans to eat the turd sandwich known as Obamacare. Obama, huckster witch doctor, lied to Americans when it counted most — "If you like your plan, you can keep your plan. If you like your doctor, you can keep your doctor."

The 99th rate pseudo-intellect Obama is still too stupid to understand how true insurance works and how markets work.

Later in the day, Arnie crossed my path. Arnie said,

"The Democrats gave in to the Republicans to allow their insurance company buddies to get a piece of the action. Should have been Medicare for All. How about getting insurance companies out of the scheme, as they add nothing and take a cut.
"Nobody in countries that have a government health care system goes bankrupt because of medical treatment. Had an uncle on ex-wife's side in Canada who got 3 years of cancer treatment in BC, got moved to Ontario to be near the family for hospice care treatment for another year. His bill? $0. Insurance companies' job seems to be to think of all they can to deny care." 

Poor Arnie. Arnie should know that medicine is a product like cars, food, movie showings and the like. And like any product, without incentive, the producers of products disappear. Insurers are an indispensable participant in any economy. So I told Arnie a story:

A Mohammadan, a Jew and a Hindu are neighbors. The Mohammadan hates the Jew and the Hindu as all Mohammadans do. The Jew does not like the Mohammadan and thinks the Hindu is heathen. 
A wise Christian comes along and reminds the three hating enemies of the fire the other day that almost wiped out all three houses of their cousins, another Mohammadan, another Jew and another Hindu all of whom live next door to each other with only one house burning down. 
The Christian shows that sometime later, one of their houses will be burned in an accident. The Christian tells them he will pay out if a fire burns one of their houses, but only if all three pay a fee to the Christian every year. The fee is so much smaller than the price of building a new house. 
The Christian undertakes this activity and foregoes doing what he used to do because the fees collected from the hating Mohammadan, hating Jew and hating Hindu covers his expenses to collect the fee, and his time to convince each of them to buy the insurance from him, time which he could have used to paint a picture, build a house and so forth.
Without the Christian, the hating Mohammadan, hating Jew and hating Hindu would not talk to each other. They would continue to hate and one of them would lose a house.

If Arnie were the only one on earth, who would make his medicine? Who would pay for his medicine?

If you say Arnie himself, then when Arnie makes his own medicine, can Arnie also gather food or fuel for warmth?

If Arnie and another were the only ones on earth, who would make Arnie's medicine? Would Arnie try to convince the other to do it for him by trading away some of whatever Arnie has gathered in the same time it takes the other makes medicine on his behalf? Or if Arnie were bigger, would Arnie threaten to murder him if he did not make Arnie's medicine?

No matter how many more you add to this, unless you trade freely, you are threatening others who are not your kin to improve your life at their expense.

An insurer is someone who comes along and says,

"Say, I have watched mankind long enough. Some of you are going to experience losses. Others of you are bullies and would assume murder, if need be, to get your way. 
"I can help you stop bullying each other and replace what is lost to the loser. It's called insurance. Based on the skills I have gained, skills of the mind  that are no different than the surgeon, architect or even car mechanics, I can take on your potential losses of what you have at risk. All you need to do is compensate me for my skills to the point that dissuades me from becoming a surgeon, an architect or even a car mechanic."

Insurance, this is why it exists.

The problem with medical bills insurance is the same problem Americans have elsewhere in industriies like telecommunication and transportation. There are handful of firms who have colluded to engage in regulatory capture.

Regulations exist to inhibit upstarts with better capital (newer technology) from entering a field and instantly wiping out the extant capital structures of established players.

It's called Crony Politics.

For the deeper thinker, here are excerpts from my work titled,  The Theory of Trading Property for Profit, which is the only correct theory every offered on commerce.

Men produce things for the purpose of trading those things through purchase and sale in effort to secure profit expressed in buying power, which today gets embodied in cash or credit. Men do so because they believe their gained buying power sooner or later will let them buy something else wanted, which better suits their living, than what it is they sell.

To this drive to produce in hopes of profit so that we can buy what we want in the future, we give the name as the profit motive.

It is this living by using property as capital to produce a surplus of other property, hoping to trade that property as wealth in purchases and sales for prices such that the sum of sales exceeds the cost to gain those sales which we call commercialism.

When anyone can gain exclusive control over a thing, whether of the mind or of matter, from the mass of free goods, this control gets called property. And so by property, all mean an exclusive right to control a good of trade.

The essence of property resides in relationships of men as to right and duty toward each other in relation to things. Property is the right of ownership in something first recognized by custom, and today, by men through law in administration of justice.

Property created and traded is wealth. Wealth is the property of purchase and sale.

For all of trade, profit is the true regulator. Any producer only will produce surplus property goods of trade when believing profit can be gained over outlays needed to produce such surplus. As well, based on skills and know-how, any producer shall focus efforts to produce surplus property goods of trade, which lead to the biggest profit.

Without at least hitting break even, a seller must exit the field. The effect is a lessening of supply. In the face of the same bids, prices must rise.

Profit is both indicator and signal. The presence of profit signals potential for return to increasing capital to gain efficiency in effort to capture profit. Otherwise, competitors could come forth with better capital and snatch away that profit.

The sum of sales must at least equal the cost of production otherwise the producer goes to ruin.

For every enterprise undertaking adventurer, uncertainty exists over the present estimate of future prices. As well, there is uncertainty over the present estimate of future sales. Thus, there is uncertainty as to profits.

As well, uncertainty exists over delivery owing to dangers that can lead to loss.

The main loss incurred by anyone is the outlay in transformation of property into capital and from capital into wealth. However, such loss gets named operating cost.

Two other kinds of losses can happen. Loss arises also owing to outright destruction of property from materialized dangers. There is potential for an increase in what gets put on offer by all sellers against bidders, which could result in loss.

Should loss happen, someone must bear the loss of property and thus future earnings from what has been lost.

Risk-takers bet that they can calculate the long-run average loss from all conceivable dangers and all chances. In so doing, risk-takers gamble in hopes of a gain.

Risk-taking specialists can better take care of loss than the enterprise-undertaking adventurer and the wage-seeking worker. Such risk-taking specialists make it their business to understand the methods to profit from such activity.

There are four kinds of specialists — (1) insurers, (2) exchange speculators, (3) investors, (4) bankers.

Enterprise-undertaking adventurers seek to eliminate loss. Much of the improvement for the practical arts owing to technology arises in pursuit of better methods to eliminate loss.
Even after improvement, enterprise-undertaking adventurers can not eliminate every chance of loss. It is for this, that adventurers seek a specific kind of risk-taker, the insurer.

Insurers specialize in compensation against loss by splitting losses into fractional duties against which losers have rights. In this way, insurers broker fractional duties.