MIT Expert Urges Overhaul of U.S Health Insurance
A specialist from MIT suggests a big change for the health insurance system in the United States. Alexander Hamilton, not widely known for this, helped create the world's first health insurance policy in 1798. It covered sick and disabled seamen and was paid for by taxpayers.
MIT Professor Amy Finkelstein points out in a new book that the U.S. has been trying to provide medical care for those who can't afford it. Policies have expanded over time, including emergency room care for everyone and insurance for certain serious illnesses.
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| MIT Expert Urges Overhaul of U.S Health Insurance |
However, none of these policies fully meet the needs of the U.S. population. About 30 million Americans lack health insurance, and even those with insurance often face high costs that outweigh the benefits. Medical debt is a massive problem, with $140 billion owed, mostly by people with health insurance.
To address these issues, Finkelstein and economist Liran Einav propose a complete overhaul of the U.S. health insurance system. Their idea is to have a basic, free health insurance layer for everyone, with an option for private insurance for additional care.
Finkelstein believes that the U.S. should effectively and efficiently take care of people when they are ill. She recognizes that the current healthcare system has flaws and calls for significant improvements.
Piecemeal Efforts to Fix U.S. Health Coverage Issues
Finkelstein and Einav, researchers with numerous awards for their health insurance studies, are now speaking out about the problems and solutions in healthcare. They highlight issues faced by both insured and uninsured individuals in the U.S.
Around 150 million Americans rely on employer-provided insurance, but it can be lost if they change jobs. On the other hand, those with public health insurance, like Medicaid, may lose eligibility if their income increases, leaving many uninsured at some point.
Despite some reforms, like the Affordable Care Act, many remain without coverage due to complicated sign-up procedures or lack of information. The U.S. has tried to address coverage problems through piecemeal policies for specific diseases, but Finkelstein and Einav question this approach, advocating for universal basic coverage instead.
The book emphasizes that the U.S. has a history of adjusting healthcare policies, and providing basic care when most needed is an important expectation.
The Solution for Better Health Care: Free and Automatic for All
Finkelstein and Einav propose a solution to provide free and basic health care for everyone without complicated sign-ups or charges. This system ensures you won't lose insurance if you change jobs or improve your income.
Additionally, they suggest having private health insurance for extra perks like private hospital rooms or elective medical services. This way, people can choose to upgrade if they want.
While this plan won't create a perfectly equal system, Finkelstein believes it would be a significant improvement. She emphasizes that the key is to ensure everyone has essential basic coverage.
Many wonder if the U.S. can afford such a system, but the book says yes. The U.S. already spends a large portion of its GDP on health care. In fact, European countries spend a similar percentage on their public health systems, and Finkelstein believes the U.S. could achieve universal coverage at the same cost.
The book is against modest co-pays because they can hinder access to essential medical care, which goes against the idea of universal coverage for all.
When the Impossible Becomes Possible: Hope for the Health Insurance System
The idea of the Finkelstein-Einav health insurance system might seem challenging to achieve, but there's reason for some hope. It's an argument that can appeal to people of all political beliefs, not just progressives. The book points out that even some conservatives have supported universal coverage in recent times.
While a free basic care system might not be implemented immediately, Finkelstein and Einav believe in the importance of sharing their ideas openly. They follow economist Milton Friedman's suggestion of keeping these ideas in the public eye until they become more politically feasible.
In the meantime, the authors urge people to take a closer look at how U.S. health care policy implies a responsibility to help everyone, much like Alexander Hamilton's aim to protect seamen from hardships in their lives.
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