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Journal of Economic Perspectives: Vol. 8 No. 3 (Summer 1994)

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

Article 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): 45-53.

DOI: 10.1257/jep.8.3.45

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.

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Authors

Pauly, Mark V. (U PA)

JEL Classifications

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

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