DeLong on Kerry on health care

John Kerry wants the federal government to pick up the tab for catastrophic health care costs. Brad DeLong explains why that would be a good idea.

Brad DeLong likes John Kerry’s health care proposal, and says why.

The trick in creating catastrophic insurance is to make sure the deductible is high enough not to tempt healthy people to self-insure. By covering only 75% of the costs over $50,000 and tying eligibility to having private health insurance, Kerry gets around that problem, while still greatly reducing the incentives for cherry-picking and cost-shifting.

Neat.

Author: Mark Kleiman

Professor of Public Policy at the NYU Marron Institute for Urban Management and editor of the Journal of Drug Policy Analysis. Teaches about the methods of policy analysis about drug abuse control and crime control policy, working out the implications of two principles: that swift and certain sanctions don't have to be severe to be effective, and that well-designed threats usually don't have to be carried out. Books: Drugs and Drug Policy: What Everyone Needs to Know (with Jonathan Caulkins and Angela Hawken) When Brute Force Fails: How to Have Less Crime and Less Punishment (Princeton, 2009; named one of the "books of the year" by The Economist Against Excess: Drug Policy for Results (Basic, 1993) Marijuana: Costs of Abuse, Costs of Control (Greenwood, 1989) UCLA Homepage Curriculum Vitae Contact: Markarkleiman-at-gmail.com