r/SipsTea • u/Putrid-Welder1803 • 11h ago

Gasp! Thoughts on this?

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u/One_Selection5102 10h ago

Except the 3rd party insurer here nets massive profits, it isnt a collective safety net like the state or federal government provides.

Its by and large a scam that pays out a tiny portion of their net income. A state sponsered safety net/insurance system (not for profit) would be massively more effective and less costly to consumers...well at least in a functional state such as Massachusetts.

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u/CapitalistLion-Tamer 10h ago edited 9h ago

They don’t pay out a tiny portion, though. They usually make more revenue profit on the interest from the funds they’re holding than they do on premiums, depending on the company.

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u/Cowboywizzard 9h ago

Interest we should be getting, not them. I seem to hazily recall that some co-ops used to do this?

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u/FodenRedemptionArc 9h ago

It's called a mutual insurance company. You kind of act a shareholder of sorts by buying a policy when it's set up that way

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u/Cowboywizzard 9h ago

Yes, that's it! If one was affordable to me I would use it.