I've made this point several times (e.g.
), but it's worth highlighting again:
For Obamacare to Work, Everyone Must Be In, by Robert Frank, Commentary, NY
Times: Two beliefs continue to shape debate on Obamacare. First,
pre-existing medical conditions shouldn’t prevent people from obtaining
health insurance. And second, people who don’t want health insurance
shouldn’t be forced by the government to purchase it.
These may seem to be reasonable positions. But they are incompatible. That’s
been shown by historical events, and it’s now being strikingly confirmed by
recent experience in the emerging Obamacare insurance exchanges.
The crux of the matter is what economists call the adverse-selection
We must ask those who would repeal Obamacare how they propose to solve the
adverse-selection problem. That problem is not an abstraction invented by
economists to justify trampling individual liberties. As experience in most
countries around the world has confirmed, it is a profound source of market
failure that renders unregulated insurance markets a catastrophically
ineffective way of providing access to health care.
Posted by Mark Thoma on Sunday, August 4, 2013 at 12:24 AM in Economics, Health Care, Market Failure |