Morbus Dulk

Friday, August 10th 2012

Morbus Dulk

Meerbus Dolk

Thursday, August 9th 2012

Meerbus Dolk

Lord Tardican Master of the Eagletards

Wednesday, August 8th 2012

Lord Tardican

Neefnorbius

Tuesday, August 7th 2012

Neefnorbius

kleefnorbius

Monday, August 6th 2012

kleefnorbius

Health Insurance

Saturday, August 4th 2012

Rant follows!

Health Insurance should be about 2 problems.

  • Making sure every citizen has access to health care when they need it;
  • Removing the burden of insuring workers from business.

If you don't want to solve those two problems, no probs. Stop reading :-).

Bad luck is relatively rare, fortunately. But is very costly when it occurs. More than the person having the bad luck can afford. A car crash. A long term, disabling illness. Food poisoning. And so on.

The only way to insure against bad luck is to spread the risk. If you spread the risk across too few people, individual contributions become unaffordable. So you need to spread the risk across as many people as possible.

What about a market in insurance?

People buy insurance. That solves the problem! The motivation to buy insurance is simple; if you don't pay then you are on your own.

But it is in the interests of insurance companies to avoid insuring those who might need a pay out.

If a person gets really sick then that person's ability to pay insurance goes down.

If a person is poor, then that person's ability to pay is also limited.

As cost pressures are applied, the insurance company progressively removes what it insures against and who insures until only those unlikely to claim a pay out can get it.

Gradually the pool of people buying insurance goes down. Premiums go up.

More cost pressures, more decreases in payouts, more restrictions on who can get insurance.

More people drop their insurance. And so it goes.

Eventually the market system fails to do its job. Insurance is really expensive and covers hardly anyone.

The best way to insure that everybody pays a proportion of the costs of dealing with each instance of bad luck on the proviso that they have all their costs met in the event they have some bad luck.

It's the same argument people use for the police, the army, ambulances, and so on. Not many people can afford to hire a personal bodyguard or a mercenary, but occasionally everybody needs to call upon one. Health insurance is no different.

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