We discussed the ins and outs about health insurance. We talked about premiums, deductibles, and copays, as well as the relationship between the 3. We explained how health insurance is like a gamble, and gave club members a challenge to figure out which plan is better: one with a low deductible, but high premiums and co-pays, and another with a high deductible, but low premiums and co-pays.

It turned out that there was no correct answer. It was solely dependent on chance which one the better option would be. This is because if you are choosing a plan with a low deductible, but high premiums and copays, you hope that you will not have to go to the doctor that often, since then you would only have to pay the cheap deductible once and the expensive copays just a few times. However, if you are choosing a plan with a high deductible, but low premiums and copays, you hope that you will have to go to the doctor many times, because then you will have to pay the high deductible, but the premiums are cheap and every time you go to the doctor, you won’t have to pay that much for copays, so you will get your money’s worth out of it.

However, in reality, you have absolutely no idea how many times you will need to go to the doctor, which is why health insurance is such a gamble. We also discussed that nowadays, many companies are granting their employees complimentary health insurance and we elaborated on this more with some examples, like Walmart and McDonald’s. Additionally, we talked about Medicare and Medicaid, which were government-sponsored health insurance programs.