A Guide to Health Care Reform

Author:

Cutler David M1

Affiliation:

1. Assistant Professor of Economics, Harvard University, Cambridge, Massachusetts; Faculty Research Fellow, National Bureau of Economic Research, Cambridge, Massachusetts; Council of Economic Advisers in Washington, D.C..

Abstract

There are four rationales for health care reform: increasing the efficiency of health delivery; reforming the market for health insurance; providing universal coverage; and reducing the federal deficit. These goals are reflected in most reform proposals. Achieving these goals involves several problems, however. Paying for universal coverage may lead to labor supply or demand reductions. In addition, reform involves large federal risks that must be dealt with through deficit financing, reduced benefits, or lower subsidies.

Publisher

American Economic Association

Subject

Economics and Econometrics,Economics and Econometrics

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