Health Care Reform as Seen by a General Economist
No 1073, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University
Universal coverage, it is argued, implies universally required insurance, to avoid adverse selection into last-resort care implicitly guaranteed. It also entails community rating, such that insurers cannot choose among risks. Individual mandate makes more sense than employer mandate. A system is proposed in which individual can choose among a government Medicare-like plan and private insurance offering equivalent services. Means-tested assistance would help individuals pay premiums.
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