That actually does sound very bad. Even US health insurance companies, rightfully derided for profit mongering, manage to come in at single-digit overheads.
The average health insurance deductible is $4,358 and the average premium is $321 per month.[3] That means that on average US citizens pay $321 per month for (5237-4358) / 12 = $73.25 of expected value. That's a 4X markup over the expected value of insurance.
Health insurance companies might be reporting single digit overheads but they are providing $1 of value for $4 and are inefficient.
[1] https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1361028/
[2] https://www.mrmoneymustache.com/2017/11/05/when-your-shitty-...
[3] https://www.cnbc.com/amp/2017/06/23/heres-how-much-the-avera...
I guess it's still a whole number factor sort of thing.
I also wonder if those numbers are accounting for Medicare and Medicaid (which add costs to the private insurance system).
>> To estimate lifetime health care costs, we employ a method based on a current life table, also known as a period life table model.
Thus, these costs are representative of recent costs.
In the next 80 years, both the expected value of insurance and the cost of insurance will change. Health insurance premiums are expected to increase by double-digits in 2019.
https://www.fool.com/investing/2018/05/26/whos-ready-for-a-1...
Your calculation makes no sense. Healthcare insurance pays out for catastrophic events, hence the deductible, not evenly every year. You need to know the distribution of payouts to get a meaningful result.