Drugs and Risk Markets
The public nature of information is central to other aspects of healthcare, such as the illegality of genetic screening in providing healthcare insurance. Which personal details, from genetic predispositions to behavoural risk-factors such as unhealthy eating habits should be kept private from insurers? In any case, this freedom of individual privacy becomes, at least implicitly, a social risk-sharing arrangement. The situation need not remain binary though; life insurance prices can be broken-down by cause of mortality e.g. (20% heart disease, 10% cancer X, 5%, cancer Y, 1% accident, etc), so if an individual has a likelihood of contracting a certain form of cancer at 200% the average rate, their insurance premium will increase by 2 * the weight of that risk factor. It would be inefficient to deny them coverage entirely, and eople who are less likely than average to suffer that cancer will see their premia decline, and not be compelled to take-on someone else's specific risk. Like drug-makers insuring their risk tables, insurance companies could re-insure their risk tables, although this is the information insurers would like to keep private!
Likewise, regarding illegal drugs, legalization will have to wait until risk, especially health insurance, markets mature. Almost inevitably, the increased availability and reduced price of legalized drugs would lead to wider and greater usage. While there are valid debates concerning whether or not the current legal order accurately ranks the deleterious effects of legal and illegal drugs, it is indisputable that drugs such as alcohol or anything that involves smoking pose serious risk-factors. Therefore, health problems and healthcare costs will tend to escalate if there is significant drug legalization. This would be mitigated by a reduction in the implicit social risk-sharing of health insurance caused by an increase of public information. Unhealthy activities would then have a discouraging, additional "tax" put on them.