Is health insurance a viable business?
To begin with a little history...
Health insurance started as accident insurance in the US in 1865 and didn't cover illness until 1890. At that time medicine really wasn't all that effective, nor was it particularly expensive relative to other costs of living.
People got sick, they got better (or better enough that medicine couldn't do anything more for them and they had to live with their condition and the doctor is no longer in the picture) or they died.
With the technology we have today we are often facing situations in which people get sick, do not die and also do not get better. We can keep people alive, but we can't cure them of many diseases that require very expensive treatments.
I can see how insurance companies can not both keep premium costs down to a level a healthy individual would be willing to pay and yet meet their obligations to their clients who fall ill.
In my tin foil hat moments I wonder if the outrageous behavoir we are currently seeing in the insurance industry is because they know that the industry operating under the parameters of the past 110+ years are no longer viable and they are just out for as much money in their pockets as they can be before the whole industry collapses.