Cheeze_Pavilion said:
sneakypenguin said:
so barring some sort of cancer or similar disease i'm good to go.
Yeah...I wouldn't exactly call having health care that isn't going to up to the task of paying for treatment for "some sort of cancer or similar disease" being "good to go."
And even in said event I can just sell assets and go bankrupt. No one else should have to pay for me. I don't feel I have a claim to someone elses work and money. (one reason why I didn't take my state scholarship cause its taxpayer funded)
Well, then your problem isn't with health care, your problem is with any sort of government expenditure meant to improve the quality of life of citizens.
Firefighting for example. If a poor neighbourhood catches fire why should the rich have to pay to put it out? I find the argument that because some people didn't try to become doctors or lawyers then they should die earlier than they have to, just so...
grrrr. I can't even explain it except with the phrase
morally repugnant. And this is from someone like me, who's always a bit wary of tax hikes and believes privatisation is (mostly) good.
There will always, always be those who are poor relative to the rest of the country, and because health care prices in a private system are determined by peoples' ability to pay, the poor will always be stiffed.
Since I'm back I'll try to recall The Undercover Economist's take on private health care. It began with examining second-hand cars. Why can you never buy a good second-hand car? Because the moment it's second-hand no one will pay anywhere near as much for it as they would for a brand new one - they just don't know what's been done to it. Even if it were bought yesterday -
especially if it were bought yesterday - the price would be much lower. Knowing this, no one who has a good second-hand car will sell it. Why do so when you'll get a fraction of its real worth? Because of this, the only cars on the market are bad ones; which pulls the price lower; which means that even fewer good second-hand cars will be sold; and so on.
There are a few ways to deal with this problem, but they're all suboptimal.
The first is to become a trustworthy seller. How do you become trustworthy? By selling lots of second-hand cars openly and having a big store. When you've got a big property people are comforted that you aren't a fly-by-night dealer; they'll pay more, safe in the knowledge that either the car's good or you'll be amenable to taking it back for the sake of your reputation.* This is a seller side solution: become respectable.
The other kind of solution is to gather as much information about the car as possible. How far has it gone? What's that noise? Can I poke around the engine? Those tyres look flat. Etc. The more you know about the car the better you can judge its worth. This is a buyer side solution: figure out what you're getting into. Unfortunately, it's very hard to be 100% sure about a car, so second-hand cars are still cheap and crappy by and large.
Now apply this to health care. In this case the buyer is actually the insurer and the buyer is the insuree. The insuree is selling their body and saying "Here it is, can you insure it?" The insurer looks at that body and says "How much will that cost me?" The insuree, who has a natural incentive to keep his premiums down, will be wary of saying how risky insuring his body will be. And he can't make himself respectable since you can't 'buy a big car lot' in the case of health care. So the insurer has to make money off people whose costs he doesn't know ahead of time. How does he respond to this?
First, he tries to figure out as much about each person as he can. Do you have a history of heart disease? Are you a smoker? Any mental illnesses in your family? And so on. As he gains greater knowledge of the insuree he can raise prices for that insuree in particular. There are two problems with this, though. First, it's inadequate. No one has a crystal ball they can look into to figure out their illnesses ahead of time. (If that were true a lot of the medical industry would be redundant!) So the insurer can never be sure how much money this insuree will cost him. (We'll return to what that means later.) Second, it has the same effect on health insurance as it did on cars: the more you know about a car the more accurate you can be about its price. The closer you are to understanding how sick someone will be over their life, the closer their insurance bill will be to the
actual cost of the medical care they'll receive! Faced with that proposition, why would any of us bother with insurance companies? We're really just putting money into a bank that we'll withdraw in the hope that it will cover the treatment we need. If it doesn't (because of section 32c** in your coverage plan) then you'd have been better of with the bank. Every step closer insurance companies get to perfect knowledge, the closer they are to charging what you would have paid anyway.
Since ICs don't have perfect knowledge about your future (and thank god for that!) their only possible response is to charge
everybody more. They know that they're insuring a whole bunch of sickly people who'll suck more money out of them than they pay, so everybody will have to pay the balance for these people***. In response, those who are young or healthy or poor (or a combination of those) will opt out, since they won't see the point of paying inflated premiums for something they probably won't use. This means there's a greater proportion of leeches to profit-making-propositions so ICs have to raise everyone's premiums
again, and so on and so forth. Pretty soon you're left with three groups: the sick, who know
any price is worth it; the rich, who can afford any price; and the comfortable, who know the value of insurance and happen to have money for a plan. Meanwhile, ICs are missing out on a swathe of the market - the poor, who could still pay
something if it weren't so damned expensive; and the healthy and foolish, who could afford it but decide it's not worth it at its current expense.
Nobody's happy, and people are dying because a wholly private system is
fundamentally flawed.
*Incidentally, this is why banks are big marble affairs. When you've built your house out of marble it's pretty clear you aren't going anywhere.
**Stiffing you is another way insurance companies make their profits and keep premiums down.
***This is one of the reasons I dislike the question "Why should I pay for someone else's health care?" If you're relatively healthy and have insurance
you already are. You're paying for all the sick bastards who are leeching (quite understandably) off the private system.