THE TAX SYSTEM EXPLAINED IN BEER

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100...
If they paid their bill the way we pay our taxes, it would go something like this...
The first four men (the poorest) would pay nothing. 
The fifth would pay $1. 
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that's what they decided to do..
The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20". Drinks for the ten men would now cost just $80.
The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still drink for free. But what about the other six men ? How could they divide the $20 windfall so that everyone would get his fair share?

They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man's bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.
And so the fifth man, like the first four, now paid nothing (100% saving). 
The sixth now paid $2 instead of $3 (33% saving). 
The seventh now paid $5 instead of $7 (28% saving).
The eighth now paid $9 instead of $12 (25% saving). 
The ninth now paid $14 instead of $18 (22% saving).
The tenth now paid $49 instead of $59 (16% saving).
Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.
"I only got a dollar out of the $20 saving," declared the sixth man. He pointed to the tenth man, “but he got $10!"
"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar too. It's unfair that he got ten times more benefit than me!"
"That's true!" shouted the seventh man. "Why should he get $10 back, when I got only $2? The wealthy get all the breaks!"
"Wait a minute," yelled the first four men in unison, "we didn't get anything at all. This new tax system exploits the poor!"
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn't show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and government ministers, is how our tax system works. The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.
David R. Kamerschen, Ph.D. Professor of Economics.
For those who understand, no explanation is needed.  
For those who do not understand, no explanation is possible

Cash-Paying Patients are Such a Bother 

 When is the last time you paid cash for something and the seller made you fill out a signed, witnessed, and dated form explaining that you were expected to pay in full at the time of purchase immediately after you had signed a credit card slip authorizing payment for the full price of the service that was about to be rendered?

Never? You obviously haven’t tried to pay cash for health care lately.
Called things like “Self-pay financial policy and waivers” or “uninsured patient information documents,” the forms treat self-pay patients like chumps who must be reminded of their responsibilities. Even if you have just written a check or run your credit card for the full quoted price of a discrete routine service, you will still be required to sign and date a witnessed document saying that you know you are responsible for paying for services.
At HCA facilities, the Patient Information Document helpfully explains that

• the “balance due on the account is expected to be paid in full at the time of service,”
• “if you are unable to pay the discounted account balance in full, we will work with you to establish monthly payment arrangements,”
• if “you cannot establish monthly payment arrangements, we will assist you with applying for Medicaid assistance,”
• “if you quality for a charity discount based upon Federal Poverty Guidelines, your account will be considered paid in full.”

How HCA determines whether someone’s income is below Federal Poverty Guidelines must remain, for the moment, one of life’s little mysteries. Do people who have just lost their jobs and technically have zero income qualify for free hospitalization?
The “Self-Pay Financial Policy and Waiver” form for a group of physical therapy clinics explains that its cash pay clinic fees will be reduced “from our regular commercial fee schedule to $80.” Although the clinics say they are always willing to take your money, paying patients must stipulate that they understand that “payments received after the date of service will be accepted but no reduction of fees will be made” and that “no forms will be produced now or in the future for you or us to submit for insurance billing.”
In short: Pay cash, eliminate collections overhead, and get reduced prices.
Real health care reform will have arrived when cash is the norm for routine services, and those who pay cash are treated as valued customers rather than as potential deadbeats.