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  4. Summer 1994
  5. Universal Health Insurance in the Clinton Plan: Coverage as a Tax-Financed Public Good

Journal of Economic Perspectives

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

Universal Health Insurance in the Clinton Plan: Coverage as a Tax-Financed Public Good

  • Mark V. Pauly
Journal of Economic Perspectives
vol. 8, no. 3, Summer 1994
(pp. 45–54)
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Abstract

The financing arrangements embodied in the Clinton health reform plan involve some important differences in the way in which public goods are usually financed. The subsidies to small, low-wage firms mandated to provide benefits distort markets in both labor and products, and offer incentives for the creation of small firms. In addition, the financing scheme implicitly envisions a head tax on families at modest income levels but offers a possible rationale for it. Nevertheless, the main reason for many of the financing features appears to be an attempt to hold down the apparent budgetary cost of universal coverage.

Citation

Pauly, Mark V. 1994. "Universal Health Insurance in the Clinton Plan: Coverage as a Tax-Financed Public Good." Journal of Economic Perspectives, 8 (3): 45–54. DOI: 10.1257/jep.8.3.45

JEL Classification

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