The U.S. healthcare system was "crippled" by big data

One of the reasons why the U.S. health care system failed miserably is to ignore the role of big data. Big data has changed the US health-care system, not so-called better, but less vulnerable.

The insurer's insurance rates have historically been actuarized by actuaries based on morbidity and mortality statistics. This is based on metadata - the data that most actuaries have no way to go deep into a large amount of insured data for analysis. Why insurers always want to insure as many people as possible is because in this system, the profitability of insurers increases linearly with the size of insureds, so as to maintain the profit growth of insurers.

But since the 1990s, the decline in computer costs has made it possible to rate based on individual health outcomes. A notable change in the health insurance business is the shift from pursuit to rate where the business model for health insurance has shifted away from as little as possible to cover the minority, ie for those who do not need the health insurance system, purchase insurance.

The health insurance goal has shifted from relying on the majority of insureds to making profits from all insureds. Since people eventually die, it is not appropriate to be a social policy, something that is already clear around the world.

U.S. health insurers have soared profits, but as a result millions of American households do not have health insurance coverage.

Since the goal of society is to provide citizens with health protection, it is obviously not feasible to regard insurance as the only health insurance. This will only be a new bubble, facing shattered.

Some people think that marketization will eventually solve the big data problem. How to solve? From purely economic power, I have not seen how to solve the problem.

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