The problem with universal health care.

There has been a large furore over Obama's health care reform. So, what are the merits of a privatised health care system?

Privatisation, contrary to popular belief, can be seen as a fairer system. Those who live illicit lifestyles, eat unhealthily and don't exercise are more likely to fall sick. Thus, it is right that they pay a higher premium than those who live healthy lifestyles. With universal health care, the healthy, safe people are effectively subsidising the dangerous who use hospitals much more. The healthy are paying for those with bad habits like smoking through taxes. A health care system needs a sense of responsibility - you pay for what you need, not for what others need.

A health care system where you get the treatment you need without paying for it creates a moral hazard. If those who choose to live dangerously are always assured of getting the care when they need it, they are more likely to be careless. However, if they know they have to pay for their own action, we are encouraging sensible behaviour.