I think MMM has shown that's mostly an overblown fear, it's also a very US-centric one, and it's improving vis-a-vis PPACA.
It is US centric because other countries have socialized medicine, which in many, but not all, is inferior to what we have in the US - also don't be confused socialized medicine is not free or cheap those countries have much higher tax rates. Obamacare is not the answer, in fact healthcare costs are increasing at even faster rate (10-11%) since inception. There are elements of the plan that are really good but most are impractical or will be far more costly than people realize - and because its government run it will be inefficient at best. In a way we already have a mixed (socialized/capitalist) plan because of medicare, medicaid, and the fact that hospital ERs can't turn anyone away. These already cost $1Trillion and instead we are leaving this current crap in place, which is riddled with waste and fraud, and adding another $2trillion program that I suspect will be riddled with wast and fraud.
The bottom line is that we need REAL healthcare reform, which should start with taking the $1trillion spent on medicare, medicaid, and Hospital ER and using that money to create a plan to protect the population but allows people with greater means to choose their care - this can be done with an increased focus on preventive medicine, nutrition, as well as with outpatient clinics (hell people with insurance and means use these now - good treatment that is well located and affordable). There also has to be a focus on accountability - a person that is 350 lbs, smokes and continues to eat processed foods everyday and not exercise andwon't take action to better themselves then they should not be unconditionally covered at the same cost as someone else. However, that person should initially be given an opportunity and the support needed to change (there could be excerise classes and nutritionists at these clinics)
MMM's has written about healthcare but has not actually lived that part yet, it has been provided by Mrs. MM's job, which she is leaving so it will soon be put to the test. Anyway the primary mitigants described by MMM is to be healthy and have a high deductible plan so your monthly premiums are less - I don't dispell this and currently have a HD plan. If you stay healthy you win, if you don't your losses are essentially capped and you are only out a bit more than a traditional plan.
Well there are two issues with this:
(1) sure one bad year won't kill you financially, its only $10k, but if it is a recurring or chronic issue then that could be an additional $10k a year or another $250k in investments needed.
(2) just because you live healthy doesn't mean you will be healthy - my mother was the epitomy of health - runs, swims, bikes, eats whole grains, low fat, etc - but she still got cancer. All is well now there were many years with a lot of expense and some of those continue. MMM is in 30s this risk increases exponentially with age. It also increase with the more people that you have to include - just the law of averages. My view is that if you have an HD plan you need to be prepared to write those checks every year.
