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  5. Two Improvements on the Clinton Framework

Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

Two Improvements on the Clinton Framework

  • Peter A. Diamond
Journal of Economic Perspectives
vol. 8, no. 3, Summer 1994
(pp. 61–66)
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Abstract

Under the Clinton proposal, states choose a single payer or large regional alliances, where individuals choose from all plans in the market. This should give the high administrative costs of individual choice, not those of group choice. States should have another option--small alliances offering limited, group-based choice. Clinton proposes comprehensive insurance for all, with courts enforcing coverage for all medically necessary services not explicitly excluded. Covered services are not coordinated with resources available. Eventually, rationing will be needed. Less comprehensive basic coverage is an additional tool for rationing and decreases the government's role in determining health spending.

Citation

Diamond, Peter A. 1994. "Two Improvements on the Clinton Framework." Journal of Economic Perspectives, 8 (3): 61–66. DOI: 10.1257/jep.8.3.61

JEL Classification

  • I18 Health: Government Policy; Regulation; Public Health
  • I11 Analysis of Health Care Markets
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