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Two Improvements on the Clinton Framework

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  • Peter A. Diamond

Abstract

Under the Clinton proposal, states choose a single payer or large regional alliances, where individuals choose from all plans in the market. This should give the high administrative costs of individual choice, not those of group choice. States should have another option--small alliances offering limited, group-based choice. Clinton proposes comprehensive insurance for all, with courts enforcing coverage for all medically necessary services not explicitly excluded. Covered services are not coordinated with resources available. Eventually, rationing will be needed. Less comprehensive basic coverage is an additional tool for rationing and decreases the government's role in determining health spending.

Suggested Citation

  • Peter A. Diamond, 1994. "Two Improvements on the Clinton Framework," Journal of Economic Perspectives, American Economic Association, vol. 8(3), pages 61-66, Summer.
  • Handle: RePEc:aea:jecper:v:8:y:1994:i:3:p:61-66
    Note: DOI: 10.1257/jep.8.3.61
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.8.3.61
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    References listed on IDEAS

    as
    1. Peter Diamond, 1993. "Privatization of Social Security: Lessons from Chile," NBER Working Papers 4510, National Bureau of Economic Research, Inc.
    2. Diamond, Peter, 1992. "Organizing the Health Insurance Market," Econometrica, Econometric Society, vol. 60(6), pages 1233-1254, November.
    3. Randall P. Ellis & Thomas G. McGuire, 1993. "Supply-Side and Demand-Side Cost Sharing in Health Care," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 135-151, Fall.
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    Citations

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    Cited by:

    1. Kim Sébastien Pham, 1996. "La réforme du système de santé américain : entre assurance et solidarité," Économie et Statistique, Programme National Persée, vol. 291(1), pages 71-85.
    2. James, Harvey S., Jr., 2007. "A New Institutional Economics Perspective on the Relationship Among Societal Values, Governance Structure and Access to Rural Health Care Services," Working Papers 7362, University of Missouri Columbia, Department of Agricultural Economics.
    3. Bahram Adrangi & Kambiz Raffiee, 1997. "An econometric analysis of health care reform in the U.S," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 3(2), pages 181-192, May.

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    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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