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Ensuring insurance.(Economics And Regulation)(Book Review)

The American Enterprise

| December 01, 2004 | Murray, Iain | COPYRIGHT 2004 The American Enterprise, a national magazine of politics, business and culture (TEAmag.com). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Ensuring Insurance Joseph Antos, "Kerry, Bush and the Uninsured," AEI Health Policy Outlook, September/October 2004 (aei.org)

According to the U.S. Census Bureau, about 45 million Americans, or 15 percent, were uninsured for medical costs in 2003. Both candidates in the just-completed Presidential election proposed ambitious schemes to reduce this number. AEI scholar Joseph Antos examined each of the proposals and found that the two parties headed in dramatically different directions.

Antos starts out by pointing to several reasons why the headline number overstates the problem. A fifth to a third of the uninsured, it turns out, have family incomes above $50,000. They can afford coverage; they simply choose not to obtain it. Second, 4 million of the uninsured are eligible for government coverage but do not enroll. Third, some of those miscounted as uninsured by the Census Bureau are actually enrolled in Medicaid. And spells without insurance tend to be short, and largely voluntary. Around 20 25 million of the 45 million uninsured have a genuine problem.

Senator Kerry's proposal was to subsidize private insurance and expand government programs. Antos points out that those subsidies would primarily benefit employers and those already insured. Only a small fraction would trickle down to help the uninsured.

Moreover, Kerry-style subsidies would "blunt incentives" to ...

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Source: HighBeam Research, Ensuring insurance.(Economics And Regulation)(Book Review)

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