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  3. Journal of Economic Perspectives
  4. Summer 1994
  5. Public Finance Principles and National Health Care Reform

Journal of Economic Perspectives

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

Public Finance Principles and National Health Care Reform

  • Richard Zeckhauser
Journal of Economic Perspectives
vol. 8, no. 3, Summer 1994
(pp. 55–60)
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Abstract

Public finance principles, though usually treated as a minor consideration, lie at the heart of effective national health care reform. Four principles are discussed: charge for a service where its cost is created; distinguish rents, resources, and transfers; know what services cost and pay accordingly; balance distributional and equity concerns. The principles' implications include: since employment does not much affect health costs, financing (particularly of incremental insureds) need not be employer-based; health resources being immobile, many cutbacks in expenditure will not reflect real resource savings; and health care financing should mesh with an overall program of taxation and expenditure.

Citation

Zeckhauser, Richard. 1994. "Public Finance Principles and National Health Care Reform." Journal of Economic Perspectives, 8 (3): 55–60. DOI: 10.1257/jep.8.3.55

JEL Classification

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