A Sucker Bet
Rich Hailey explains why insurance is like a casino. It's a long post, but worth it as Hailey makes some excellent points.

In order for the system to work, those who claim in excess of what they pay in must be outnumbered by those who claim less than what they pay in, which means that for the majority of the people, they will pay in more than they get back. In Vegas, this is called a sucker bet, and the house loves gamblers who take it. Additionally, insurance companies set their premiums based on total claims over the past year, adjusting the rates to ensure a slight profit. In Vegas, it’s called the house’s edge, and it is what pays for all those multi million dollar casinos and resorts.

The worst part is that it is all unnecessary. If my employer paid me the $500 he pays for my insurance, I know I could invest it for a higher return than any private insurance company. I don’t have the overhead of adjustors, secretaries, boards of directors, advertising, and so on to cover. 100% that money could be dedicated towards creating a medical savings account, covering my health care far more effectively than an insurance company could. Of course, it would throw a lot of insurance company employees out of work, but we need to get rid of the parasites before they suck us dry.