What’s the Difference Between Local, State, and Federal Government?


Hello my name is David and welcome to Auspol Explained. We’re gonna be discussing what the local vs state vs federal
government is. What’s the difference? So Australia has three tiers of government.
Now federal is perhaps the one we’re all the most familiar with. That is the one
with the Prime Minister. A lot of Australians would recognize Parliament
House in Canberra but what are the other two? And what are they even responsible
for? Who knows? I do. And soon you will too. So the federal government covers all of
Australia… obviously. It’s made up of politicians in the Senate and the House
of Representatives. If you don’t know anything about that check out my first
video. Australia is a two-house system or, if you’re feeling really fancy and want a
new word that you will almost never use, bicameral. Means two houses. Bills must
pass in both houses to become law. So the state government covers its own state.
Naturally! Wow. I’m really teaching you a lot. Okay so each state has own
constitution and Parliament. The head is called the Premier. Quick note though:
territories do actually have a different type of government even though they are
the same sort of tier. The Northern Territory and the ACT have a different
system. The parliament of states is divided into the Legislative Assembly
and the Legislative Council – unless of course your Queensland where they only
have one which is the Legislative Assembly because in 1922 they thought
nah screw it like this-ffff- nyer and they were like yeah we’re gonna only have one!
It’ll work. I mean it works for the Northern Territory and the ACT because
they also only have the Legislative Assembly. This means that they have one
house or if you’re still feeling fancy – unicameral. The ACT’s Legislative
Assembly has the power of a local council as it has no local government
itself. It’s pretty small. Territories also don’t have the same scope of
legislative powers as state governments. The federal government can come in to a
territory and just simply override any law at any point in time. For example the
ACT legalized same-sex marriage back in 2013. The High Court then challenged it
based off the Liberal government’s insistence. It was then undone in December of
the same year. Thankfully four years later in 2017 marriage equality passed
and was federal law all across Australia. Side note though: I used to get confused
when I see offices of politicians and it’s like “it’s the member for such-and-such”
and I’m like “that’s not the- that’s not the federal Member for such-and-such.” That’s
because they’re not federal they’re state and so if you ever see a sign that
says blah-dee-blah MLA or blah-dee-blue MLC like AHA! Wierd
name but I know that you’re a state politician. That’s how you know. Fun fact:
no one called blah-dee-blah has ever run for federal parliament. It’s just uh, look it
up. That’s a fact. Local government is things like the City Council or Shire
Council. This is where we get Mayors or Shire Presidents. Here’s the thing: the
size of a shire or a local council isn’t necessarily one per town. Large
metropolitan areas can actually have several. This explains why if you’ve ever
seen something like the city of Subiaco and you’re like “but we’re in Perth?
Subiaco is a suburb…” Well, yes, Subiaco is a suburb, but it is also “the city of
Subiaco” as in a local government. A local government can be as small as just
simply covering a handful of suburbs. So what do they even do? Well first off the
federal government is the most important and the highest tiers. Laws can vary
between states but if there’s a conflicting law on the same subject
between a state and a federal then section 109 of the Constitution
allows the federal government to just override it. It can override any
conflicting element of the state law so long as it is constitutionally allowed
to do. So the federal government makes laws about things such as foreign
affairs, social security such as welfare and pensions, industrial relations, trade
with other countries, immigration and citizenship, currency, the census, marriage and
divorce, bankruptcy, the postal service – very important that is federally owned –
lighthouses – also very important – and defense. That’s right, they’re charged
with running the country’s overall economy and the laws that we must all
abide by no matter where we live in the country.
It gets its power from section 51 of the Constitution. Ooh
constitutional law! The sexiest of all the laws. Yes that’s right: Section 51 of
the Australian Constitution does specifically state that the federal
government has jurisdiction over lighthouses. Hey, it was the year 1900.
That was apparently the peak of importance. What the Prime Minister says
about lighthouses we must all obey… about what the Prime Minister says about
lighthouses. I want to know every federal election what is the stance on
lighthouses? How will you change the law regarding lighthouses? It is compulsory
to vote in federal elections. Register to vote or update your electoral details
if you have moved house recently at the Australian Electoral Commission website
that is www dot AEC dot gov dot au. The AEC is your friend. Once enrolled to vote on a
federal level you are enrolled to vote in all elections state, local, and federal.
The state government can make laws on anything that isn’t covered by the
federal government. It makes laws on things like consumer affairs, issues on justice
such as police laws and prisons, health, emergency services, education,
conservation and environment, sport and recreation, industrial relations, public
transport and roads. And that’s why when you go interstate you need a different
travel card for every single capital city’s form of public transport. The
state government! They did this to us! Why do I need an opal card?The smart rider
does the exact same thing! Voting in state elections is compulsory
too so don’t forget that. There is a specific website for each electoral
commission of each state or territory like the Victorian Electoral Commission
the West Australian Electoral Commission. You can just google it all but for
convenience I will put all the links in the description. So the duties of the
local government though are more focused because, well, they have to be. They’re very
small areas. So they do deal with things such as local road maintenance, picking
up the garbage and sewerage, building regulations and land subdivisions, pet
control, public health, libraries, footpaths, community services, town planning
and recreational facilities. Basically it builds you parks and it maintains the
area and then tells you when your bin day is. When I say it does libraries I
mean local libraries not like the State Library and which is different from, say,
the national libraries. Look: just support whatever library you see at any point in
time. Don’t be afraid of libraries… is the one thing that you should take away from
this video. Support them. Get close to them. Learn their secrets. And yes, you
heard me. Pet control. It is your local government that tells you that you’re
not allowed things like a sheep, goat, pig, alpaca, horse, deer, camel, llama, emu,
ostrich, or even a kangaroo! If you live in certain suburban areas. Oh well.
They’re the ones controlling your camel ownership. They’re the ones to complain
to if for some reason you desperately want to shove a camel into suburbia you
weirdo. They also say things like, for example, I am only allowed to own six
chickens but no roosters. I’m allowed six chickens but no roosters and they have
to be a certain distance from the fence and also like food preparation areas
and where I live I’m also allowed a maximum of 30 pigeons. That’s the law!
I cannot have 31. I don’t know what the law says if I break it and I buy
thirty-one pigeons but I am too much of a coward to find out. I am allowed bees
though and until the state or federal government tells me otherwise nothing
will stop me from owning as many bees as I like except for financial
restrictions, my allergy to bees, and how scary that makes me feel being near them.
Quick note: voting in local elections isn’t compulsory in Western Australia,
South Australia, and Tasmania. Everywhere else you do have to pay attention to
that. Voting is very important in Australia just keep doing it. Details
about your local elections can be found at the Electoral Commission website of
the specific state you live in. But wait there’s some crossover in some of these
duties. For example: health. The federal government’s budget always mentions
health as a prominent feature but also the state and local government also have
duties regarding health. So what’s happening there? Let’s explore.
The health system is actually jointly run by all three tiers of government so
let’s start from the top and work our way down.
Federally we have Medicare which is the foundation of our medical system. It
helps cover some of the medical costs for a lot of different procedures and
doctor’s visits and helps people from descending into U.S. styled medical
bankruptcy. So the federal government funds Medicare, the Pharmaceutical
Benefits Scheme, subsidizes aged care services and protects the community from
radiation from nuclear safety research. What? Yep that’s what it says right on
the health dot gov dot au website. Uh thanks? I didn’t realize that I was at risk of
radiation. Thanks to the federal health system for protecting me and also
you from just too much radiation.I love not living in Fallout! The federal and
state government have the shared responsibilities of funding public
hospitals. So for instance in the twenty seventeen to eighteen financial year the
federal government gave the South Metropolitan Health Service in Western
Australia nineteen thousand eight hundred eighty seven million dollars. I
don’t know why they just didn’t… put that in billions. And the Western Australian
government gave two thousand one hundred and fifty two million dollars. This was
spread out over several hospitals. The state and local government then have a
shared responsibility when it comes to managing public hospitals, community and
mental health services, and food safety and handling regulations. So let’s
discuss a few more examples of cross-over. In the case of roads the federal
government has a national road funding. The state government then looks after
things like buses, major roads, road taxes, traffic lights, police, road signs, etc etc.
The local government then deals with things like local roads, street signs, and
bus stops. For education the federal government funds states and higher
education. State government deals with their educational department and school
funding, and then local government in Victoria and New South Wales for example
deal with kindergarten and preschool. For taxes the federal government has taxes
to raise money like the GST or income tax,
or sometimes the corporate tax rate. States have their own way of raising
money like transfer duty, land tax, gambling tax, etc but depend on the
federal government for more than half of their funding. Local governments have
these things called rates which are basically taxes for property owners like
your council rates for owning a house. They then use this to help support the
community. So there you have it! Your local government deals with things such
as parks, town planning, and chickens, while your state government deals with
things like public transport, and managing hospitals, and the federal
government deals with things like immigration, the post office, lighthouses,
and I guess the military. Together they work for an intermingling system that
covers every single facet of the Australian government. Now you can
impress everyone with your amazing knowledge of the different tiers of
Australian government. Win the admiration of all your peers as you
regale them with everything that you learned in this video… or just share it
with them so they can learn it as well. Thank you very much for watching. Don’t
forget to like, share, and subscribe – but also comment down below what you would
like to learn next. Also there is a link in the description to a copy of the
script full with citations to the specific things that I have mentioned so
you can read more about them or use them as resources in an assignment or essay
because although the things that I’ve said are correct you can’t use a youtube
video as a citation in an essay. Sorry. Also there is a Patreon in the
description so if you want to support free educational content please
contribute. Rhank you very much and I will see you again.

Opening up government through Open by Default


Hi. My name is Alex Benay. I’m the Chief Information Officer for the
Government of Canada. Open government as far as I’m concerned
is the future of government especially in the Government of Canada. I think we’ve got an unbelievable opportunity
to turn the government into a platform more people can engage with. In order to do that, we have to put more and
more of our content online by default. Ultimately for me, open by default or open
government is about reducing the barriers to access to government. I think the days of the silent public servant
need to come to an end. We need to engage with the communities around
us more and regardless of what sector that they’re in. The government right now to promote open government,
we’re launching a pilot project that is open by default. So the platform in itself is just the beginning. We live in an age where there is an interconnected
society and we need to start leveraging the benefits and the power of the masses. The tools are available and at our disposal
to be able to engage in this kind of conversation. You can check out the open by default portal
for yourself on open.canada.ca.

Good Samaritan law


If you witness an opioid
overdose, don’t turn away… Stay and call 911 or your local emergency number. Follow their instructions and administer naloxone
if you have it. Even if you’ve taken drugs
or have some on you, the Good Samaritan Law
can protect you. It’s important to stay
until help arrives. The Government of Canada
is taking action. Together we can help save lives. A message from
the Government of Canada. ♪♪

The Fragility of Good Government


it’s an enormous and very rare privilege to have lived in the days of good government across nations and centuries few people have ever done so by a rare bit of of luck certain groups in a few corners of the globe tasted decades of this remarkable anomalous blessing they might foolishly especially if they traveled little seldom read history books or had a very high estimation of their own populations they might even have started to assume it was a natural or god-given norm yet the default state of almost all nations is quite other it is authoritarianism bullying demagoguery corruption monopoly racial segregation and state-sponsored aggression and murder we will not now it seems be living in dramatically unusual times it was the years before that will be remembered as unusual a daring bet against the facts of our nature we are sliding into a new age of darkness we are reverting to a mean civilization was always simply an unlikely concept those who are afraid are typically reassured by optimism all will eventually be well the kindly tell them but we need stiffer darker council we should explore not what might ideally happen which leaves us oscillating painfully between hope and despair but what will happen if the worst comes to pass we need to make ourselves entirely at home with catastrophe looking at it squarely in the eye so it’s not to keep catching glimpses of it here and there and so taking fright and you every time we stand to see that whatever comes to pass will in a desperately reduced and pitiful form still be survivable a home could be built among the ruins there might be some sort of life to be led despite everything nothing is ever properly unbearable not least because we always retain access to the best escape route the stoic philosophers of ancient Rome those poor souls agitated beyond compare by the antics of their hysterical thin-skinned murderous Emperor’s would known to calm themselves down by holding up their veins to the light and calling out freedom knowing it could if it came to that all be over in minutes we shouldn’t be surprised by our fellow citizens this is what the human animal is really like very sweet at points from close up usually generous two small children and the elderly hard-working but highly prone to delusion tribal offended by strangers an inclined to rational analysis and with a fondness for slaughter and reckless messianic plans the elite routinely derided as out-of-touch and not so on the basis of forgetting how much milk or the rent costs rather on the basis of forgetting have dark and broken human nature really is there’s a natural longing to do something quickly and angrily there’s an equal longing to give up and hide the Council of quietism neither feels quite right neither endurance nor explosion the only true avenue is to commit ourselves to years of careful adroit plotting to bring about a renewal of that now ever more implausible dream a land governed for a little while longer by a spirit as fragile as crystal of wisdom and tolerance

The Complete Moderate’s Guide to Healthcare


A fake Youtube chef cut his hand in the kitchen…
this is what happened to his wallet. KB is a 25… ish year old Youtuber, presenting
to the emergency room – which was a huge financial mistake. This video was brought to you by CuriosityStream. My original plan for this video was to take
that scenario through multiple different healthcare paths to show you all the options and costs. I very quickly realized that wasn’t going
to work. Even if I had done that, those numbers would
have been completely meaningless to you because of how healthcare works in our country. It’s not like ordering a Big Mac. The numbers I would’ve given you would only
apply to other 25-ish year old men living in [HARM TO ONGOING MATTER], it’s very unlikely
that it would be relevant to you. So there’s really no point in digging up
those numbers. Especially since the cost of a procedure not
only varies widely within the same city, but sometimes on the same block. A few stitches can cost anywhere from $200
to $3000. I picked stitches because it’s pretty universal,
there is no gender, or race, or even class, that is more prone to needing stitches. I’ve personally needed stitches at least
five times that I can remember. The obvious explanation for that wide range
is where on the body were you injured? Stitches on your shin are going to be easier
and cheaper than stitches on your eye. Except… no, some people pay less for eye
stitches. And these price ranges exist across the board
for all procedures, if you walk into a medical facility with a burst appendix, it’s going
to cost you anywhere from $1500 to $180,000. I somehow doubt that one appendectomy could
be 120 times better than another. Some cases are complicated and require extra
imaging or post-operative care, the point is, you don’t know that beforehand. When you get the bill, it could be anywhere
in this range. So rather than just shouting numbers at you
and laughing about how ridiculous things can cost, I want to explain why that range exists. Many of you likely know parts of the answer
already. The most obvious being that urgent care is
almost always cheaper than emergency care. Both with and without insurance. Urgent cares are a relatively new concept
in the US and provide a cheaper alternative for non-life-threatening emergencies. Like stitches. Let me be clear, when in doubt, go to the
emergency room, you will never be turned away, but if you walk into an urgent care with something
more serious, they might send you to the ER, possibly delaying lifesaving treatment. But odds are that if you only need four stitches,
it probably isn’t going to kill you any time soon. Emergency rooms cost so much more because
of the infrastructure and overhead required to keep a large hospital running. But also because of more nefarious reasons. 70% of hospitals in the United States are
privately operated but not run for profit, which is surprising to most Americans. Insurance companies, on the other hand, are
only run for profit. So in order to attract more customers, insurance
companies have to offer better deals. Which is somewhat difficult when a hospital
is non-for-profit. Usually, if you’re not making a profit,
it means your prices are already as low as they can be. Enter the hospital chargemaster. That’s not a chargemaster. Pretend. Every hospital in America has a list of prices
for every good and service they provide, which until this year, was kept hidden from the
public. Which is a huge problem in a capitalist system. You can’t really make an informed economic
decision if there is no price transparency or easy way to compare different costs. Not that you would ever shop around during
an emergency anyway. So the insurance companies went to the hospitals
– Side note, in some cases, the insurance companies own the hospital outright, and while
the hospital is a non-profit… they aren’t. – and said “hey, you’re currently charging
your customers $200 for this service, why don’t you increase your chargemaster price
to $250, but still only charge our customers $200, that way we can tell them we’re getting
them a discount.” This should sound familiar to anyone who has
ever shopped on Black Friday. Repeat that for every procedure or medication,
nationwide, and you have the first piece of the puzzle. When figuring out the cost of healthcare in
the US, you have to look at multiple variables, we’ll add to this list as we go, but we
can start with the base cost. The price of materials, labor, facilities,
and sometimes including those blue light chargemaster rollbacks. As we’ve seen, this base cost can range
from three to six digits depending on where you go. Which is the second variable – location. Not only are we talking about state or city,
but street. Add in provider type – are you going to
an emergency room, urgent care, or just your doctor – and you have even more variation. Since we’re only five minutes in, you probably
figured out that this list isn’t even close to complete. An unfortunate reality of our system is that
it also matters who you are. The Affordable Care Act made it illegal for
hospitals and insurance companies to charge you differently based on your previous medical
history, but they can still charge you differently for basically any other reason – including
gender and perhaps most obviously, your age. For example, stitches on an infant are objectively
more difficult and therefore more expensive. Bet that wasn’t the direction you expected
me to take the ageism argument. Procedures aside, age is one of the biggest
factors that contribute to the cost of health insurance. Alright non-Americans, get your laughs out
of the way now. [Laughs in Foreigner] Health insurance started
as a sort of membership program, known as Health Assurance, you paid a fixed amount
every month and any medical costs you incur were on them. Your health was assured. It didn’t take them very long to figure
out the formula for success. Obvious abuses aside, that simple just model
wasn’t sustainable. So over time, they have shifted more of the
cost of actually using medical services onto the consumer, called it Insurance, and made
the system so complicated that most Americans don’t even bother trying to understand it. Lucky for you… I’m not doing anything, I’ve got time. The health insurance industry didn’t really
take off until World War 2, along with rationing fuel and rubber, prices and wages were also
fixed by the government. So companies had to get creative to attract
talent. The most popular way was to offer benefits
on top of your salary, like paid vacation, housing, or health insurance. Today, 60% of Americans get their health insurance
through their employer. This is thanks, in part to ObamaCare, officially
known as the Affordable Care Act or ACA, which made it so that any company with at least
50 employees has to offer health insurance. Though “offer” is a bit of a loose term. Which is yet another factor – how much your
employer offers to contribute. Your insurance premium might be $500 a month,
but your employer might only pay half of it… or none of it. In order to discuss how insurance actually
works, let’s take a look at something a little more simple – car insurance. In most states, if you own a car, you are
also required to have car insurance. The more people who are paying into insurance,
the lower the cost for everyone – most people accept this reality when it comes to car insurance. But not health insurance, for some reason. The Affordable Care Act did a lot of good
things, like mostly getting rid of pre-existing conditions, allowing you to remain on your
parents’ insurance until you’re 26, and a bunch of other stuff we’ll get to later. But it also required everyone to have health
insurance, through the Individual Mandate. The hope being that the more people who have
insurance, the cheaper it will be for everyone, just like car insurance. But the mandate was just repealed so, never
mind, I guess. Everyone with insurance pays a premium, this
is like your membership fee and you pay this regardless of whether or not you actually
use it. If your premium is $100 a month and you never
get into an accident, that $1200 a year is simply gone. Because of this, a lot of people think of
insurance as a bit of a scam – If I didn’t use it, I should get it back or something. This is what I’m going to call Stage Zero
– you pay your premiums, you don’t use it, and nothing happens. Rinse and repeat, every year. There are two tiers of car insurance, the
lowest being Liability, which only pays out if you are at fault in an accident, and Comprehensive,
which pays for any damage to your vehicle, whether it be a collision or an act of god. But once you actually have an accident, you
enter Stage One, when you pay all costs out of pocket until you reach your deductible. This is the amount you have to pay before
your insurance will contribute. For many car insurance plans, the deductible
is also your maximum out of pocket – or MOOP. Who the hell is Moop? It’s the most you will pay to fix your car
in a given year. After which, you enter Stage Two, when your
insurance pays all remaining costs. Sometimes, there is a maximum annual or lifetime
benefit, after which you would be on the hook for any remaining costs, but that’s fairly
rare. So if you get into an accident that costs
$15,000, you would only pay up to your deductible, say five hundred dollars, and your insurance
company would cover the rest. Congratulations, having car insurance probably
saved you thousands of dollars. But when it comes to health insurance, most
people only focus on the cost, if they never go to the doctor they’re just throwing away
money every month. This is important, so pay attention. Not having insurance is only cheaper, if you
know that healthcare costs without insurance will be less than your annual premium and
your deductible put together. Remember, without insurance, you will be paying
regular chargemaster prices. Some hospitals might be willing to work with
you and give you the “discount” price if you’re uninsured, but you can never count
on that. For our car insurance example, that tipping
point would be $1700. If you know that your car repair costs are
going to be less than $1700, it’s cheaper to just go without insurance. But you literally can’t know that. You can’t predict if some if some random
tire is going to hit you. Just as you can’t predict if you’re going
to cut yourself or your appendix is going to burst. So let’s say you’re playing it safe, you
have health insurance, and something unpredictable happens… Just like car insurance, you started in Stage
Zero. You’ve been paying your premiums and have
been relatively healthy until now. You go to the hospital and you enter Stage
One, you are paying everything out of pocket up to your deductible, so far everything is
pretty simple. But Stage Two is where things become a bit
more complicated – this is when you and the insurance company split the costs of your
care, through two mechanisms. A copay is a flat fee, like $25 every time
you go to the doctor. That’s just to walk in the door, by the
way, if they do anything more than that, it costs extra. Usually through coinsurance, which is a percentage
rather than a flat fee, so for example, 20% of all outpatient procedures. Only copays and coinsurance count towards
your MOOP, premiums, prescriptions, and out of network costs, do not. Once you hit your maximum, you enter Stage
Three – when your insurance company covers all remaining costs. The Affordable Care Act prohibits any maximum
annual benefit or lifetime limits for health insurance, though they can still exist for
dental and other insurance types. So Stage Three has no maximum dollar amount,
but your MOOP is annual limit that resets each year. This is the next variable we’re going to
add to our list – When the healthcare cost occurs. If your appendix bursts with only one month
left to go in the year and you hit your maximum out of pocket, if you still need continuing
care the next month – which is also technically the next year – you will have to pay your
maximum out of pocket again. Effectively doubling the cost of this single
event even with insurance. There are many different types of health insurance
programs, all of which cost different amounts based on what kind of care you want. Or more likely, what your employer chose for
you. The cheapest type is an HMO or Health Maintenance
Organization which operates through smaller networks of providers. Another very important term and concept. Doctors and hospitals sign agreements with
insurance companies to be part of their network and see their patients, sometimes at a reduced
rate, as I mentioned earlier. If you’re on that insurance, you can only
see those doctors and hospitals. If the doctor or the insurance company decide
they don’t want to work together anymore – you don’t get a say. If you like your doctor, or health plan, you
can keep your doctor. He couldn’t legally mandate that your doctor
and insurance company continue to work together forever – this is America. So now your doctor is out-of-network. If you see an out-of-network doctor, you will
very likely be on the hook for the entire, non-discounted bill. And you might not know it until afterwards. It’s not uncommon to go to an in-network
hospital and be seen by a prohibitively expensive out-of-network specialist at that hospital. HMOs typically have lower premiums up front,
but higher out of pocket expenses later. Everything is routed through your Primary
Care Provider, they make decisions about your health and you can’t see a specialist without
a referral or pre-authorization from your insurance company. That doctor acts as a gatekeeper for your
healthcare… which would make the insurance company the keymaster? The other end of the spectrum is a PPO or
Preferred Provider Organization, where you don’t have a primary care provider deciding
on what specialists you see or what care you receive. The premiums are higher but the out of pocket
expenses are lower. They typically have a larger network than
HMOs and out of network care is significantly cheaper, you don’t need a referral or pre-authorization. So it costs more to have more control and
more choice in your healthcare. That’s how capitalism works right? More choices and competition leads to higher-
wait… And then you have all sorts of programs in
between. Like the Exclusive Provider or EPO, which
is similar to a PPO, but out of network costs more and you might need pre-authorization
to see a specialist. Then there’s Point of Service, which is
like an HMO but out of network costs less and nobody abbreviates it. It’s a mess and even the definitions I just
gave you vary from company to company and state to state. But in general, those are your options, yet
another variable to add to the list. But wouldn’t it be great if we could just
cut out the middleman and pay for our own health care? Yeah, or you could- Shut up this is America. Some people have the option of getting a High
Deductible Health Plan or HDHP, which have extremely low premiums and extremely high
out of pocket costs. But it unlocks the ability to create a Health
Savings Account. An HSA is very similar to an IRA retirement
account, any money you pay into it is tax free and as long as you only use it to pay
for your insane healthcare costs, it doesn’t get taxed on the back end either. But wait, it gets better. Just like an IRA, you can invest your HSA
money, growing it potentially infinitely… which you also don’t have to pay taxes on. This is why they call them triple tax shelters. If you’re like me, you’re already googling
how you can open one of these up, and I’ve got some bad news for you. You can only open an HSA if you have an HDHP. If you’re on any other form of health insurance,
or even no insurance, this option is not available to you. And unless you’re perfectly healthy, that’s
probably a good thing. The astute amongst you will have noticed that
I haven’t given you any numbers for these programs… and there’s a reason for that. Not all HMOs and PPOs are created equal. Another good thing the Affordable Care Act
did was to establish a standardized tier system for health insurance, so people looking on
the marketplace can actually price compare and shop around. The absolute lowest level is called Catastrophic
insurance, these are typically your HDHPs, gamblers who are saving up their money and
hoping they never get sick or end up in a car accident. That’s about the only thing these plans
cover – emergency services. In America, all health insurance plans, regardless
of type or tier, cover emergency services in- or out-of-network. Though once you’re stable you better leave
that out-of-network hospital or the bill will give you a heart attack. Which just repeats the cycle. Catastrophic plans are like only having liability
insurance on your car, it really only helps you in the worst of situations, otherwise
you’re on your own. You also have to be under 30 to get it, which
means it doesn’t apply to me anymore so- I mean, it does apply to me for the next five
years. The four main tiers of the Affordable Care
Act are bronze, silver, gold, and platinum. The better the metal, the more you pay in
monthly premiums, but also, the lower your out of pocket costs when you actually receive
care. The ACA defines these tiers by the average
coinsurance for the plan, they call this the actuarial value. For Bronze, the actuarial value is 60%, they
pay an average of 60%, and you pay 40% in coinsurance. In Platinum, you pay 10% and they pay 90%. Again, this is the average, for some services
it might be 92% while others might be 85%. At the end of the year you might find that
you actually paid 11%. The actuarial value is the only definition
for the tiers – premiums, deductibles, and MOOPs can be all over the place. There’s really no way for me to compare
a Platinum HMO to a Silver PPO or a Bronze POS. Making this another determining factor in
your overall healthcare costs. But for the sake of an example, let’s just
pick one: gold. The average monthly premium for a gold-tier
plan is $597 a month for an individual and $1252 for a family. The beauty of family plans is that it usually
costs the same whether its two people or seven. If you’re getting a gold plan through your
employer, they might be paying for some of it. If you got it through the health insurance
marketplace, healthcare.gov, you might be getting subsidies to help. But for our purposes we’re just going to
stick to the base cost. So, let’s say you need those $3000 stitches. An individual gold-plan deductible can range
from $1000 to $5000, but the average is $1320. Remember, you pay that much before insurance
even kicks in. The remaining cost is shared between you and
the insurance company at a 20-80 split, only costing you an additional $336. The average individual gold plan MOOP is $5878,
so we’re not even coming close to stage three. In the end, those $3000 stitches cost only
$1656, just over half, wow, it’s a good thing you had insurance… You forgot ab-
Son of- yeah, as most people do, I forgot about the premiums. On top of the stitches, you paid $7164 in
premiums, bringing your total health care costs for the year to $8820. Here’s the same scenario for the average
gold family plan. As I’ve said, it’s impossible to know
whether an uninsured person with the same $3000 injury would fair better financially… But it is possible. And while the person writing the $1600 check
while paying monthly premiums is going to feel a lot more financially secure than the
person cutting $3000… The economic realities of healthcare costs
in America don’t care about your feelings. Now, I picked gold as an example because it
has an actuarial value of 80%. Which is the exact same as Medicare. Medicare is a socialized health insurance
program that covers 59.9 million Americans, most of which are over the age of 65. It is the largest single provider of health
insurance in America. I briefly covered Medicare and how it’s
funded in my video on welfare, along with another program for poor people called Medicaid. Medicaid is run at the state-level. So while it covers 74 million people, they’re
spread across 54 different state and territory programs that all set their own requirements
and pay outs. A single person in Alabama must make less
than $771 a month to qualify for Medicaid. The average panhandler makes $25 a day begging
for money on the corner – if they’re out there every day this month… Maybe take Halloween off, is all I’m trying
to say. Medicaid benefits depend on your income level,
at the lowest you’re paying single digit copays and at the highest, 20% coinsurance. Just like Medicare. But while Medicaid is a complicated welfare
program, Medicare is not. It’s government-subsidized health insurance. Every American who works pays into it with
a 1.45% FICA tax, which is also matched by your employer. If you contribute for ten years, you get full
Medicare when you turn 65. Medicare is not free, it’s also not simple
– but since it currently covers 20% of all Americans and presumably will cover all of
us once we’re old enough, it’s worth looking into. I need to start by saying that this is just
an overview. Most of my audience is several decades away
from Medicare, so if you’re currently in the process of enrolling, please speak to
a professional, this is just an introduction. There are entire channels dedicated to explaining
Medicare – we’re just going to scratch the surface. Medicare has four parts. Part A is for inpatient services like overnight
stays at a hospital. For the vast majority of people, there are
no premiums for Part A. But there is a $1364 deductible and a complicated copay and coinsurance
table. Medicare Part B is for outpatient services
like regular doctor visits. This does have a monthly premium for most
people, but before I tell you what it is, remember that you’re getting an actuarial
value of 80%. $135.50 a month – regardless of who you
are. But we’ve learned that low premiums usually
equate to a high deductible so- $185 deductible. So because stitches are usually an outpatient
procedure, we can figure out that those $3000 stitches would cost you $748 out of pocket. And $2374 a year in total expenses. There are no family plans in Medicare, it’s
just for the individual retiree, and these are by far the cheapest stitches we’ve come
across so far. But there is a catch. Medicare Part A and Part B, collectively referred
to as Original Medicare, have no maximum out of pocket limit. You pay the same 20% coinsurance to infinity
and beyond. Which is why we need to talk about Medicare
Supplement Plans, also known as Medigap plans. These add a MOOP, as well as reducing your
coinsurance. This is an addon run by a private insurance
company that doesn’t get to decide what or how much they cover, that’s dictated
by Medicare. They do get to decide what to charge you though. Alternatively, you can scrap Original Medicare
altogether and opt for Part C – better known as Medicare Advantage. This is a private insurance plan that takes
the place of Parts A and B (and sometimes D) and acts as its own supplement, so you
get a MOOP. You pay your premiums to them, rather than
Medicare. Now the insurance company gets to make decisions
about your healthcare, instead of the government. And it is required to give you that same 80%
actuarial value… in theory. In practice, the HHS Inspector General recently
found that 56% of people on Medicare Advantage were denied necessary treatment simply for
monetary gain. I know, right? I was just as shocked as you. About 36% of people eligible for Medicare
opt for Medicare Advantage, so when you hear someone complaining about Medicare… There’s a decent chance they’re not actually
on Medicare. And I’ll give you one guess as to which
Part ends up with the most waste, fraud, and abuse… It’s actually Part D, which is your optional
prescription drug coverage – but before you get mad at me for the bait and switch,
both C and D are run by private insurance companies. I’m not kidding, Part C and D waste, fraud,
and abuse is rampant, you can find the powerpoint presentations from HHS online. The problem is that when the news tells you
about Medicare waste, they usually leave out which Parts are causing that. And when they talk about healthcare statistics,
they neglect to mention that a third of the people are actually on private insurance. The 59.9 million number I cited earlier is
Original Medicare and Medicare Advantage put together. There are 44 million people on just Original
Medicare. And 90% of them don’t use Medicare exclusively,
they get a Medigap supplement plan or a Part D Prescription plan, or both. Prescriptions aren’t usually covered by
health insurance. Even in countries with universal socialized
medicine, dental, vision, and prescriptions are usually separate. And prescriptions drugs are even more of a
mess than healthcare. Each Part D plan has a list of prescriptions
they cover called a Formulary, you’ll need to look over that list when choosing your
plan. I hope you accurately predicted what medicines
you’ll need in the future. Americans pay the absolute highest prices
in the world for medications, sometimes by an order of magnitude, and the main reason
is somewhat counterintuitive. The UK has a single payer system known as
the National Health Service or NHS, every British citizen is covered for almost no out
of pocket cost. A total of 66 million people. The government negotiates prices with drug
companies, knowing that they will be the only supplier of that medication to 66 million
people. So they get a pretty good deal. There is no equivalent in the US, the government
doesn’t negotiate or even really regulate prices – the best we have is Medicare with
44 million people. And there’s a reason they pay the least. Counter to the common capitalist perception
that competition and choice drive down prices – at least when it comes to healthcare – market
share seems to have much more influence. The more people you are negotiating on behalf
of, the lower your prices. But also, it costs a lot of money to develop
treatments and medications, so most companies want to make the largest return on investment
as they can. But when you’re selling to the UK and Germany
for such low prices, where are you going to make your money? The country that isn’t negotiating on behalf
of 320 million people and has little to no regulation regarding price ceilings. Why do they charge so much? Because they can. The common argument against adopting a system
like the UK is that they are incredibly overtaxed. So let’s get our calculators back out and
check. The median household income in the United
States is $59,039, assuming just the standard deductions for a single person, you would
be paying $10,804 in federal taxes – both income and FICA. I have a video all about income taxes if you
want to know the actual math behind that. If you took that same income and went to the
UK, after converting to pounds and then back again, you are paying $14,451 in national
taxes. This includes your income tax and the National
Insurance tax, which is like our Medicare tax but, significantly larger. Side by side, if you make the median household
income in the US, you are paying 18.3% in federal taxes, if you took that to the UK,
you’d be paying 24.5%… but remember, healthcare is included. If you want healthcare in the US, the average
annual employer-based premium across all types and levels for an individual is $6896 a year. So in reality, you’re paying 30% of your
income in taxes and health insurance – and that’s not even considering what happens
if you actually get sick. In the interest of being thorough, if you
double the median income to $118,078 and were married with two kids – you would be paying
significantly more taxes in the UK. However, your healthcare expenses don’t
really change, whereas the average employer-based health insurance premium for a family is over
triple that of an individual. So a US family is still paying more in taxes
and healthcare – even if they never go to the doctor. The UK does have a Value-Added Tax, or VAT,
of 20%. But their cost of living is about 7% lower,
so once you consider sales tax in the US, prices are pretty comparable. A Samsung Galaxy S10 costs about $15 more
in London than New York. And a Big Mac is a dollar fifty cheaper. The quality of these products are pretty much
the same wherever you go, but for some reason, we insist that US healthcare is the exception. That has to be the last variable on our list,
American stitches are just inherently better than UK stitches. No, most people already know this, but the
UK, Canada, Australia, and most other industrialized countries beat us in just about every healthcare
metric. Life expectancy, infant mortality, maternal
mortality, the list goes on. But generally, these numbers are close enough
that you can say that the US is basically on par with everyone else. But per capita, we’re paying double what
they are. Objectively, the UK does have longer wait
times, from a few more minutes in the ER to a week or two for a specialist. But I want to challenge your assumptions here. If waiting a little longer drastically reduces
cost, but doesn’t negatively impact healthcare outcomes… How important is it to be seen right now? Can you zoom in and say the US is better in
a specific field like heart transplants or post-op complications? Sure, but overall, we’re not getting what
we’re paying for. Which is why we’ve been arguing about how
to change this system since forever. But we might actually do it this time. I’m obviously not going to talk about all
of the proposals, because you’ll never hear from most of these people ever again. So let’s just focus on two. Mayor Pete is proposing a Medicare opt-in
plan or “Medicare for all who want it.” This is just a reskin of the classic “Public
Option.” This would open up Medicare to anyone, if
you’re uninsured, you’re automatically on it, if you get health insurance through
your employer, you can switch, but otherwise nothing changes. Unless your employer wants to switch to Medicare,
in which case you don’t have a choice. It would also make a few smaller changes like
adding a Medicare MOOP and capping out-of-network costs. Most people wouldn’t see any changes to
their healthcare. Which isn’t very exciting, so let’s talk
about the plan you all want me to – the Medicare for All proposal from Kristen Gillibrand. She’s not even running anymore. You won’t let me just have- Fine, let’s
talk about Bernie Sanders. Bernie’s Medicare for All plan would basically
turn our healthcare system into the UK’s, with a single payer government health service. But with dental, vision, and prescriptions
included. Like the UK, there would be no premiums and
little to no out of pocket expenses. It also abolishes private insurance. No more employer-based health plans, no healthcare
marketplace, no deductibles, no premiums, no channels completely dedicated to demystifying
Medicare. You and your doctor will make decisions about
your healthcare, not a private corporation. Instead, the government would be the third-party
payer. How they would pay for this is always a point
of contention and oftentimes the question is intentionally worded poorly. How much are your taxes going to go up? And you said… How much are your costs going to go down? No, different question, how much will your
taxes go up? No, it’s how much are your costs, because
it’s- This sounds like a dodge because she’s trying
to reframe the question. Taxes will go up, primarily for the wealthy,
but likely the middle class as well. But remember, even if your taxes went up by
50%, the fact that this expense no longer exists means you are still better off – and
you won’t pay much more, if at all, when you need medical care. This would also reduce the overall bloat in
our system that contributes to the high cost. Your HR person has to pick a health plan,
hospitals and doctors need to hire special billing coders, the insurance company needs
claims specialists, and youtubers need to make videos explaining it all. I’m positive we can do better than this. But if you insist on keeping your healthcare
expenses unnecessarily high, even under the proposed Medicare for All, might I suggest
getting into vitamins and supplements? An industry you can learn all about by going
to curiositystream.com/knowingbetter. CuriosityStream is a subscription streaming
service that offers over 2400 documentaries and nonfiction titles from some of the world’s
best filmmakers that you can access across multiple platforms. Learn all about vitamins and the industry
that sprung up around them in this documentary hosted by fellow youtuber, Veritasium. Even though I know most of us don’t really
need to take vitamins, I can’t seem to help myself. You can get access to their entire library
for as little as 2.99 a month, but if you head over to curiositystream.com/knowingbetter
and use the promo code knowingbetter, you can have the advantage of getting your first
month completely free. As well as getting access to Nebula, the new
streaming service put together by youtube creators to have a space to create videos
without worrying about algorithms and demonetization. My channel, as well as many of your other
favorites, can be found there, including several original series. By joining CuriosityStream and Nebula, you’ll
also be supporting the channel. Full disclosure, I have no horse in this race. I am a service-connected, disabled combat
veteran, I get my healthcare through the Veteran’s Affairs hospital – which isn’t a health
insurance program. It’s a self-contained system and a bottomless
well of asterisks. So I’m not complaining about the system
and talking about proposals for change for my personal benefit. I also had no reason to give myself all that
math homework. It took me a month of daily research to figure
all of this out and present it to you and that alone should tell you this is overly
complicated. Luckily, I don’t do anything else with my
time. So now, as you’re watching debates about
taxes and reading news articles about rising premiums, you’ll actually understand what
they’re talking about, because now, you know better. If you hadn’t noticed, I made some improvements
to the set, so if you’d like to add your name to the chargemaster, head on over to
patreon.com/knowingbetter, or for a one-time donation, paypal.me/knowingbetter. Don’t forget to copay that subscribe button,
check out the merch at knowingbetter.tv, follow me on Twitter and Facebook, and join us on
the subreddit.

Europe’s Debt: America’s Crisis? – Big Government


ultimately a vast majority of current elected officials are career politicians, and they want to keep their job. And if the public pressures them to act and holds them accountable for failing to act, then they will ultimately change… because many of their top priorities is to keep their job. There are a number of common denominators between countries, and some of the challenges that exist at the federal, state and local level here in the United States. In many cases, governments have grown too big, promised too much, and waited too long to restructure. I think we just don’t know how to use money. I know that people my age never expect to get Social Security benefits. Hopeful, but I wouldn’t say very optimistic. A lot of people claim that the problem is still the slack capacity, unused workers. Why not just increase demand, employ all those workers; put those factories back to work… Well, it’s important to look at the cases that actually have been working. For example, take Sweden. We have decreased taxes, we have deregulated, and we have cut down on government spending and in 2011 we made a budget surplus of 10 billion dollars. A single data point, right? Look at these other countries: Greece, Spain, Italy – they’re all depressed. The problem is slack capacity… excess capacity….too many workers unemployed. Let’s put ’em back to work. How do you get workers back into the employment ranks? You gotta increase demand for what they do. The only way to increase demand for what they do is for government to spend more, because the private sector isn’t doing it. Well, this is the things that Keynesians always say: Just pump more money into the economy. But it’s important for us to look at all those times we have implemented these kinds of theories and the results have always been devastating. Japan in the 90s, the U.S. in ’01 and ’08. What we do need is free man, free markets and productivity. We as persons are good, we can create things. But we can’t do it when we are… buried under a burden of government regulations.

Is Monopoly a Justification for Government Regulation? – Learn Liberty


Is monopoly a justification for government
regulation? A lot of people have been very concerned about monopolies in markets, and
that concern leads people to ask, is there a form of government intervention that can
mitigate that problem? Either by breaking up a big firm into smaller firms so that they
can compete against each other or by regulating the profits a firm earns or the prices it
can charge for its product. Two things that really discipline a monopoly
firm’s ability to charge high prices are consumer demand and how much we’re willing
to pay for the product or service and the availability of competing products or services
that are substitutes for that good. Another question that often comes up is the persistence
of that monopoly over time. Even if there is some kind of market power or market dominance
in a particular industry, does that erode over time or does it persist? And if it persists,
is there some form of government regulation or intervention that would make consumers
better off? One of the challenges in coming up with that
kind of policy, though, is that any regulation that is going to reduce the profits of a monopoly
is going to reduce the motivation, the lure, the incentive to the innovator to come in
and enter that market and compete against the monopolist. And that’s the core of the
insight that we get from the economist Joseph Schumpeter, who really argued that the competitive
process is one of competition for market dominance and that these monopoly profits are the lure,
they’re the carrot that brings innovators in so that they can come up with a new, better
product or service, a different product or service to compete against the monopolist.
When competition takes that form, any kind of government regulation or government activity
to break up big firms into smaller firms that compete against each other may break up that
temporary monopoly lure and may actually undermine innovation and undermine competition. What
really keeps monopolies from persisting over time is entry, the ability of entrepreneurs,
innovators, competitors, to enter the market and compete against the monopoly firm and
offer consumers new or different products and services that will lead the original monopoly
to reduce its prices because of this competition. One other important idea to consider is that
the form the government regulation can take may also itself provide an entry barrier,
some kind of cost that makes it harder for competitors to come in and compete in markets.
And this is one of the really important, transformational things that we’ve experienced in the past
two decades with the Internet is that the Internet reduces those costs of starting up
new business and communicating your value proposition to more consumers. And so innovation,
such as the Internet, actually makes markets richer and more competitive because individuals
strive for achieving that market dominance. But they’re all doing it at the same time
and competing against each other, offering a wide variety of products and services.