Think of the constitution as the equipment and the field at a baseball game. Think of our system of laws as the rules of that game. The whole makes up our government. So long as the rules make sense within the context of the game (designated hitter rule, or a mercy rule) the game will go pretty smoothly. If you try to institute rules that do not make sense within the context of the game (laws that are unconstitutional) The game will start to break down. For example, if you make a rule that a field goal is to be kicked after a player carrying the ball enters the end zone, the rule is meaningless and disruptive, unless, you also change the field (amend the constitution) to include a goal post, and an end zone. If you try to change the rules (change the laws through redefining the terms and legislating from the bench) do redefine home base as the end zone,or the foul lines as the goal posts, you change the entire nature of the game. Changing the rules is easy. Changing the field is purposely difficult.
This is the problem we find ourselves with. The federal government has been changing the rules, without changing the field, for so long that you can hardly recognize the game.
Friday, March 19, 2010
Frank's brick.
On Private insurance:
Imagine that the risk and financial responsibility for an injury or disease is a brick. Each person carries a certain number of bricks (the number is different for everyone) just because they are alive. Some people increase or decrease their own number of bricks by choosing to engage in risky activities (or not), or eating healthy (or not), or any of a thousand ways to increase or decrease their risk. It is the responsibility of each person to carry their own bricks. It is acceptable for someone to voluntarily carry some of another person's bricks. Now let us say that Joe gets the idea that he can earn money carrying bricks for another person. So he saves his own money (or gets other people to chip in) and buys a wheelbarrow. People then pay Joe to carry some of their bricks. Joe pays some of this money to fix (health care) the bricks that turn out to be bad (the illness or injury happened) and he keeps the rest of the money. The business model is:
"Joe carrys some of your bricks, you pay Joe for this service. If Joe is carrying one of your bad bricks, then Joe pays to fix it, if not, you pay to fix it. "
This is how private insurance works.
On denial of coverage:
If joe thinks some of your bricks are bad (you have high risk factors), then he may choose to charge you more to carry those bricks, or refuse to carry those bricks at all, because his service is voluntary.
On preexisting conditions:
If one of the bricks you are still carrying is bad, it is not Joe's responsibility to pay to fix that brick. If you knowingly give Joe a bad brick (preexisting condition), then he is not responsible for paying to fix it.
On the health care industry:
Tom has a business repairing bad bricks (providing health care). It cost him a certain amount for supplies (facilities, insurance and staff) to fix bricks. He charges a certain amount for certain repairs, pays for the supplies, and keeps the rest as profit.
On medical repricing:
Now, since Joe sees a lot of bricks, and has to visit Tom, the brick fixer, he makes a voluntary deal with Tom to give him a volume discount on his's services. Since Joe is a good customer and brings in lots of business, Tom agrees to charge him at a lower rate. Tom even gets the idea to offer this discount to other people directly, in exchange for a small regular fee. He is trading occasional high profit for a steady lower Profit.
On the uninsured or self insured:
Suzie decides that she does not want Joe's services. She earns enough money to put aside some of it to pay for fixing her own bad bricks (she is self insured).
Frank cannot afford to pay anyone to carry his bricks (he is uninsured), so if he has a bad brick, he will have to pay to have that brick fixed. We will assume that it is not frank's fault that his brick broke, and no one else broke his brick (if they had, they would have to pay to fix it).
Imagine that the risk and financial responsibility for an injury or disease is a brick. Each person carries a certain number of bricks (the number is different for everyone) just because they are alive. Some people increase or decrease their own number of bricks by choosing to engage in risky activities (or not), or eating healthy (or not), or any of a thousand ways to increase or decrease their risk. It is the responsibility of each person to carry their own bricks. It is acceptable for someone to voluntarily carry some of another person's bricks. Now let us say that Joe gets the idea that he can earn money carrying bricks for another person. So he saves his own money (or gets other people to chip in) and buys a wheelbarrow. People then pay Joe to carry some of their bricks. Joe pays some of this money to fix (health care) the bricks that turn out to be bad (the illness or injury happened) and he keeps the rest of the money. The business model is:
"Joe carrys some of your bricks, you pay Joe for this service. If Joe is carrying one of your bad bricks, then Joe pays to fix it, if not, you pay to fix it. "
This is how private insurance works.
On denial of coverage:
If joe thinks some of your bricks are bad (you have high risk factors), then he may choose to charge you more to carry those bricks, or refuse to carry those bricks at all, because his service is voluntary.
On preexisting conditions:
If one of the bricks you are still carrying is bad, it is not Joe's responsibility to pay to fix that brick. If you knowingly give Joe a bad brick (preexisting condition), then he is not responsible for paying to fix it.
On the health care industry:
Tom has a business repairing bad bricks (providing health care). It cost him a certain amount for supplies (facilities, insurance and staff) to fix bricks. He charges a certain amount for certain repairs, pays for the supplies, and keeps the rest as profit.
On medical repricing:
Now, since Joe sees a lot of bricks, and has to visit Tom, the brick fixer, he makes a voluntary deal with Tom to give him a volume discount on his's services. Since Joe is a good customer and brings in lots of business, Tom agrees to charge him at a lower rate. Tom even gets the idea to offer this discount to other people directly, in exchange for a small regular fee. He is trading occasional high profit for a steady lower Profit.
On the uninsured or self insured:
Suzie decides that she does not want Joe's services. She earns enough money to put aside some of it to pay for fixing her own bad bricks (she is self insured).
Frank cannot afford to pay anyone to carry his bricks (he is uninsured), so if he has a bad brick, he will have to pay to have that brick fixed. We will assume that it is not frank's fault that his brick broke, and no one else broke his brick (if they had, they would have to pay to fix it).
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