Obamacare, much in the news lately, has noted that it depends on millions of young healthy individuals who are not currently insured to sign up for insurance, in a large part to pay for the coverage that they will extend other uninsured people who are not-so-healthy. This strikes me as an actuarial accounting error. Or a dishonest tax using crooked actuary tables.
Actuarial methods assign costs and risk based on statistical advantage of your place in a pool of subscribers. An honest actuary prices your insurance premium at the same level as your cost. Given a large enough subscriber pool, your premium averaged over the large number of people is exactly matched by the insurance payouts for your pool.
Thus adding a new group, young uninsured healthy 20 y/olds should have zero impact on the larger picture. Their premiums should be the same as the payouts for those in the same pool. But .. this is apparently not the case.
Why? Because the designers of Obamacare are crooks. Is there another explanation? ’cause it seems the only explanation I can see from here.