[uerobert]

Health insurance or insurance in general is a low margin business, and whatever margin they have is mostly through investing the premiums they collected before paying it out in claims. Most insurers pay more in claims than they get in premiums making up the losses with their investment, that's because they price their policies to undercut competitors that might not have access to such a large pool of money. So you can see how a newcomer can have hard time becoming a profitable insurance business.