Monday, October 25, 2004


We don't have heath insurance in the US. What we have is a bunch of people contributing money (sometimes not by choice) and a fund that pays people out based on somewhat arbitrary rules.

Tom Maguire outlines a much more reasonable plan (thanks InstaPundit):

The dirty little secret about healthcare insurance is that you have to maximize participation of young childless males either through coercion (single-payer) or obfuscation (make it free, which means take what would otherwise be salary and put it into the insurance pool). These guys don’t use or need the healthcare system except for accidents, so it’s rational for them not to sign up for insurance until they get married and have kids. Their payments offset the higher healthcare utilization of females, the old, etc.

With HSAs guys can chip in early and build a sizable nest egg tax-free for the day when they have a wife and kids, rational behavior that supports family values too. And if they have good genes and a healthy lifestyle, after a time they can take some of that money and buy a motorcycle! After the accident, the balance of HSA savings goes to their beneficiaries.

But some people think we need the nanny state to tell us what's best for us and do it all for us. I don't agree. I want to manage my own money. I don't want to pay money into a fund that goes to someone's acupunturist. I don't want a middle man.

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