Thus, the government solved the adverse selection problem by making a single price (have health insurance or pay a fixed fine) and forcing everybody to have insurance. Hopefully the incidence of this new usage lies most heavily on preventative care which will generally reduce healthcare costs (a point that many will concede yet say it is overreaching).But, now that I am paying for my neighbor, how am I going to feel about him eating Mc Donald’s once a week?And how can we deal with the adverse selection problem of insurance when insurance moves to politics… Simply put, any entitlement program is a re-distribution of wealth.
This is the reason why insurance and credit card companies allow you to self-select into different cost structures with different prices.
This is where the nuance comes in: if you allow people to choose, only those who require the insurance (chronic illnesses, etc.) will buy it and those who are generally healthy will not – a concept known as .
It only takes one glance at an actuarial table (and the associated health care costs with recovering from an injury) to determine that you will be subsidizing these risky ventures.
In seriousness, though, the multi-payer system sets up the incentive for those without their own insurance to be unhealthier through moral hazard.
QUESTION FROM RICHARD: I have experienced a great deal of misrepresentation when I have dated online—in particular as to a persons weight NICK PAUMGARTEN: People lie.
Apparently they exaggerate their incomes by 20 percent and their height by two inches, and everyone, I think, isn’t completely straight about body type. Z.: Online dating dehumanizes the process of dating.
QUESTION FROM DOUG: Have you ever used a online dating service? I mean, I signed on to a few for the purpose of checking them, out and taking the quizzes and scoping out what might be there, but I couldn’t in good conscience, as a husband and a journalist, start skulking about and going on dates. Communicating via email is not the same as talking face to face. People need to go out into the world and meet people NICK PAUMGARTEN: Well, this is a common complaint.
What it dehumanizes is the opening salvos, although for hundreds of years people communicated via letter or whatever before they met in the orchard or by the moat. You choose a date on-line, and get to know a person on-line a bit, and then you date in the flesh, so that you can check out each other’s pheromones and physical tics, and open yourselves up to the randomness of “the real world.” QUESTION FROM WESLEY: Grindr seems like such a great and hilarious idea.
Once I know that I am paying for someone else’s health, I want to be damn sure that they are working out.
What about other generally risky activities, such as skydiving, motorcycle driving or scuba diving?
People talk about it openly, they tell their parents, they help their parents date on-line and their parents help them.