« Links for 08-04-2013 | Main | 'Is There Any Point To Economic Analysis?' »

Sunday, August 04, 2013

'For Obamacare to Work, Everyone Must Be In'

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 affordable 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 problem. ...
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 on Sunday, August 4, 2013 at 12:24 AM in Economics, Health Care, Market Failure | Permalink  Comments (105)


    Comments

    Feed You can follow this conversation by subscribing to the comment feed for this post.