Well,
If you ask me, I'd say that we shouldn't have the government paying for ANYONE's medical care. That of course would fix the problem. That being said, this would be no more or less convoluted than any other stupid government scheme for determening benefits. In a free market the costs WOULD NOT spread.
No, it will spread. That's the whole idea of a negative externality, which is a free market phenomenon.
Unless of course you're attempting to argue that everyone else is entitled to the productivity of the affected individual.
It's not a question of entitlement. The point is you say you don't want to pay for the health care costs of other people. My rather uncontroversial point, from an economic standpoint, is that you can't avoid those costs. They will show up in one form or another. You may be better off helping paying for other people's care, like it or not.
The best person to judge the proper amount of risk is the individual taking the risk.
Exactly, and that's why the government shouldn't be in the business of deciding who has taken too many health risks. Whatever you think about public benefits programs, I think you have to agree that it is not feasible to evaluate everyone's behavior and selectively give coverage to the deserving. People will lie about their past. What are you going to do? Have an army of case workers interview their friends and family? And the emergency care issue is a big problem. I guess you would have to have a policy of not treating anyone who couldn't immediately present cash or an insurance card, even for dire emergencies. Remember that EDs bill everyone. In fact, they bill the uninsured at higher rates. The problem is just that some people don't pay. So you would have to figure out very quickly in advance who can pay.