Creating a More Efficient Health Insurance Market in the United States: Goals and Challenges

With the latest legislative defeat of attempts to repeal all or parts of the Affordable Care Act (ACA), there is renewed interest in bi-partisan, evidence-based approaches to reforming health insurance markets in the United States. 
 
Becker Friedman Institute (BFI) Distinguished Fellow Pierre-André Chiappori of Columbia University and Maxim Pinkovskiy of the Federal Reserve of New York explore the performance of the US health insurance system over recent decades, both prior to and after implementation of the Affordable Care Act (ACA). They find that relative to other OECD countries, Americans tend to pay more for less, making the health system a top priority for US policymakers. The authors highlight key misperceptions in discussions around health care reform and target factors for consideration in reforming the ACA, including the ban on using pre-existing conditions in the underwriting and pricing process. Chiappori and Pinkovskiy also explore the role of government in the regulation and provision of health insurance in the United States, raising the basic question of whether health insurance should be linked to employer contacts.
 
Read the full piece here.
 
Articles in the Fiscal Insight Series are authored by BFI’s Distinguished Research Fellows and use research-based approaches to exploring policy questions around debt, wages, taxes and inflation. The views expressed in these articles are those of the author and not necessarily those of BFI.  
 
Previous articles can be found here.