Myths And Misconceptions About U.S. Health Insurance

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Myths And Misconceptions About U.S. Health Insurance by Katherine Baicker and Amitabh Chandra

Several myths about health insurance interfere with the diagnosis of problems in the current system and impede the developmentof productive reforms. Although many are built on a kernel of truth, complicated issues are often simplified to the point of being false or misleading. Several stem from the conflation of health, health care, and health insurance, while others attempt to use economic arguments to justify normative preferences. We apply a combination of economic principles and lessons from empirical research to examine the policy problems that underlie the myths and focus attention on addressing these fundamental challenges.

Austin over at the Incidental Economist notes:

 

Baicker and Chandra don’t dumb things down and they don’t try to fit square pegs in round holes. That is, the health care system and how to reform it are very complicated. The system didn’t evolve according to some sensible plan. Its emergent properties are functions of perverse incentives, inconsistent and sometimes (but not always!) misguided government policy, and failed markets. It’s a mess! Given all that, it is folly to think that any one thing–whether it be consumer directed health plans, “Medicare for all,” or some other bumper-sticker idea–will solve all our problems.