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View Diary: Kaiser report details Medicare options (27 comments)

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  •  Why not allow wage earners pay more when they are (6+ / 0-)

    working and can afford it rather than cut benefits for seniors when they can least afford it?

    Fighting Liberal at
    “You must be the change you wish to see in the world.” --Gandhi:

    by smokey545 on Sat Feb 02, 2013 at 08:34:51 PM PST

    •  The problem is timing (5+ / 0-)

      Most people's income arrives in relatively regular amounts each time period. So we all essentially plan to spend a set amount of that income, usually above 80% on a similarly regular schedule each time period.

      Health costs rarely match that pattern. Instead they arrive suddenly and often in very large amounts.

      The best way to allow the costs to be covered from relatively regular income streams is by insurance or tax payments. The alternative is to create a debt which has to be paid off over time.

      The uncertainty of future incomes makes the debt solution rather unreliable. The statistical law of large numbers which permits insurance companies to predict overall future costs reliably is the only solution.

      But since people do not buy insurance for unpredictable events like illness a voluntary insurance is unworkable. Payments have to be as near universal as possible and cannot be voluntary if anything like universal coverage is to be implemented.

      And yeah, that means that working out the inefficiencies of the ACA over time will force the system into some form of single payer as long as the system is transparent enough so that the media can expose its failures.

      The US Supreme Court has by its actions and rhetoric has ceased to be legitimate. Whiskey Tango Foxtrot - over

      by Rick B on Sun Feb 03, 2013 at 12:43:34 AM PST

      [ Parent ]

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