Thank you for reminding me on the nice first examples on basic economics. I did not attend a US-school so I did not need to attend any "general education" classes, these six years were actually devoted to one subject only.
Your examples do not apply here; an external effect is not poluting your neighboars garden when it comes to healthcare.

The external effect in our current health care system is: an uninsured person goes to an emergency room and does not pay for the medical treatment he/she gets. Insured people, hospitals, doctors and the insurance companies pick up the tab. It would be easy (theoretically) to prevent such an effect, by simply not treating someone who can not pay (an economic death pannel if you wish), but...

About insurance,

I was not talking about coverage for diseases that are unlikely for seniors to occur, but about actual claims occurring in reality. You sure could exclude certain conditions from a seniors insurance plan but you will nevertheless end up with more medical costs for seniors, occurring within the group of diseases that actually affect seniors.
The overall re-emburcement costs for insurance companies will go up if you add seniors (they would not if you exclude conditions likely to happen to seniors, but that is not what you propose), and they would need to be covered with income form other groups that are healthier. It does not make sense to me why premium prices will go down, if you exclude conditions that will...

You got me, I am below the age of 30, but having studied the principles of economics for 6 years I can also name the exemptions of the free market, that are most often agreed upon:

- natural monopoly
- adverse selection
- information asymmetry
- external effect
- moral hasard

We have a free market because it works better, because the outcome is better not by the virtue of a free market on its own. If you would read the first book ever written on "free markets" "the wealth of nations" you would find exactly this explanation.

I am additionally not sure what you suggest to be "real freedom"? During what period of time did that happen?
In any event coming to "caveat emptor"; we had a slight gaze in the crystal ball for what it might look like just about a year ago, how well "caveat emptor" works.
Sure people should have be personally responsible and looked at their mortgage contracts and figured out by themselves that they could not in any event afford it, but well they did not. You seem to be old enough to know that people are usually stupid.
You could sure say, that stupidity should be everyones right, but the external effects of individual stupidity in the market place can be tremendous, as we just witnessed.

It was not trying to insult anyone's intellectual ability over 65, I was just pointing to the paperwork involved in signing an insurance contract that covers (or is supposed to cover) sometimes very complicated conditions. You have to be a doctor with a law degree, to fully understand what you are offered if you sign a private insurance contract today (and if you are you might be shocked what you get for your dollar).

I can not cite any scientific study but from what I heard is that seniors are the most likely targets for scams and fraud; name any reason why under the proposed free market approach of Mr Stossel, that should be any different?

But this is apart from my overall argument, that unfortunately was not answered...

in heavens name should it result in lower insurance premiums if we add the group of over 65 year old Americans, to the private market. I am no doctor but I know for certain that these are the demographics that need most care, ergo claims in the private insurance market will go up, ergo prices for premiums will go up.
Individual insurance premiums are already very high because of an array of flaws, but adding more risks will not bring the premiums down, it will make them go up.

Btw. have you every tried to explain to a person over 65 the manual to a TV? Try explaining an insurance contract to many of them and they will not understand it.

I can understand why some people do not like it if their kids are asked the question; what part of a particular speech of the current president of the united states they found inspiring. (A question that could still be answered with: nothing)but being offended by it, please!

All you "true patriots" remember the USA is "the home of the brave"; it is pitiful if we are offended by a question that trivial.

No I was not the one bringing up moral that was Mr. Prager. I simply said that I see it as questionalbe if one sees the financial strenght of a person as a morally superior to an external decission by a government official, that is still elected by the voter.

#6 I came from a country that has a hybrid system and private insurances compete with a government plan, it can be done. If it turns out that american private insurance companies can not compete with a government plan, than the justification that a private market is more efficient and beneficial for producers and consumers no longer stands. I do not think that just for ideology's sake, we should gamble with the health of american citizens.

#7 We both agree that the quality of health care in America is high, but it is high in other countries too with far less expense, i.e. less money for hospitals, doctors and so on. Maybe it is the business attitute in many american hospitals that feeds the need for that much money and not...

#1 It is rather simple to explain why Medicare and Medicaid are running out of money: they cover only bad risks. An insurance spread risks between bad and good risks, if you only have bad ones well you will run out of money. If you include good risks the analysis is not that straightforward.

#2 True that is why one also has to include a "must buy" provision to make the system work.

#3 Sure everyone gets heath care, doctors are legaly bound to help in an emergency situation (it does not always work though). The case is that if health insurance would be available and affordable for everyone, the expense of health care would be lower, since people with no health insurance would not wait to request health care untill it is...