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A Political Economy Model of Health Insurance Policy

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  • Alena Kimakova

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Abstract

This paper aims to explain the divergent path of U.S. health policy from other high-income countries. The paper develops a general framework of interest group politics to study how the organization of industry can shape health insurance coverage and greater public involvement in health insurance. Large firms face a higher degree of unionization and provide more health coverage for employees than small firms. Consequently, large firms favor the adoption of a policy of universal health care coverage as a means of divesting health care costs to the public sector. Public aversion to higher taxation counterbalances this effect. Copyright International Atlantic Economic Society 2010

Suggested Citation

  • Alena Kimakova, 2010. "A Political Economy Model of Health Insurance Policy," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(1), pages 23-36, March.
  • Handle: RePEc:kap:atlecj:v:38:y:2010:i:1:p:23-36
    DOI: 10.1007/s11293-009-9200-z
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    File URL: http://hdl.handle.net/10.1007/s11293-009-9200-z
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    References listed on IDEAS

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    1. Persson, Torsten, 1998. "Economic Policy and Special Interest Politics," Economic Journal, Royal Economic Society, vol. 108(447), pages 310-327, March.
    2. Grossman, Gene M & Helpman, Elhanan, 1994. "Protection for Sale," American Economic Review, American Economic Association, vol. 84(4), pages 833-850, September.
    3. Friedrich Breyer, 2001. "Income Redistribution and the Political Economy of Social Health Insurance: Comparing Germany and Switzerland," Discussion Papers of DIW Berlin 253, DIW Berlin, German Institute for Economic Research.
    4. Elizabeth Docteur & Howard Oxley, 2003. "Health-Care Systems: Lessons from the Reform Experience," OECD Health Working Papers 9, OECD Publishing.
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    More about this item

    Keywords

    Health insurance policy; Health care coverage; Political economy; P16; I18; H51;

    JEL classification:

    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health

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