People who do not need health insurance:
1. They never get sick.
2. They never ride in a car.
3. They do not get old.
4. They do not exist!!
Do you need health insurance?
Health insurance protects against the risk of the cost of medical expenses. Just as with any other insurance, the theory is that many people pay money into the account and if one of them needs medical treatment, the treatment is paid for out of the account. The trick is making sure that there is enough money in the account to cover all of the expenses, even if more than one person gets sick!
WikipediA provides some good information HERE.
Insurance companies develop "groups" of people that they will provide coverage for and attempt to figure out how much the people in that group will need in order to pay for medical expenses that are covered or paid for under the terms of the policy. The group may be made up of all of the employees of a company, the members of a union, or a group of self employed individuals who form a group such us under COSE or other organizations.
Insurance companies keep records on how much money that they pay out for a particular group and adjust the amount of money that they charge the members to make sure that there is enough money left in the account.
Once you reach the age of 65 (at least for now!) Medicare coverage is provided that will pay for a portion of your medical bills. In addition to paying a portion of the bill, medicare also negotiates to reduce the total amount of the bill.