A much debated issue these days is whether citizens should take out private health insurance or not. In this essay, I will argue that people who can afford it should be privately insured, but free medical care must be made available for those too poor to do so. The most important reason for encouraging people to take out private health insurance is the cost to the government. Free health coverage for people who are able to pay for it is a waste of public money. Of course, people will only pay health insurance premiums if they know that they are getting good value for their money. If they get sick, they will pay little or nothing at all. In addition, the privately insured are entitled to special benefits such as having the choice of their own doctors, and being able to avoid long waiting lists for hospital beds.