this post was submitted on 12 Jul 2023
170 points (99.4% liked)
United States | News & Politics
1939 readers
954 users here now
Welcome to [email protected], where you can share and converse about the different things happening all over/about the United States.
If you’re interested in participating, please subscribe.
Rules
Be respectful and civil. No racism/bigotry/hateful speech.
Post anything related to the United States.
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
But that's the way insurance tends to work - actuaries look at the risk involved in ensuring person X or group X against threat Y and charge accordingly.
Larger pool, lower risk. That's one of the basics in actuary tables.
That's now how it works. Adding a high-risk pool to a low-risk pool doesn't lower the overall risk. It averages it. Meaning the lower-risk pool has their costs increased, and the higher-risk pool has their costs decreased. Since the high-risk pool is much smaller than the low-risk pool, merging them is a negative for a larger population.