[godelski]

Definitely this. What people don't get is that an optimal solution in insurance is to have everyone healthy. If everyone is healthy then there's no one drawing money from the pool and the insurance company is only collecting money.

Of course the other optimization is forcing everyone to have insurance when healthy and kicking them off when they get sick.

[simplestats]

They have actuaries to make sure they get their profit margin either way. Healthy insurance customers just make sick insurance customers happier since the price goes down.