Opinion

Combining a Free Market and Single-Payer System Will Provide More Options

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A market with extensive subsidies distorts pricing and hides the true costs of insuring pre-existing conditions.
By Joshua Ronen and Kenneth A. Sagat
With the Better Care Reconciliation Act and repeal-only plan now dead on arrival in the Senate, Republicans will need to work together with Democrats to develop a new plan for America’s healthcare system. But, given the tenor of recent conversations between the parties, the next bill presented will need to make significant concessions to satisfy both sides of the table.

We propose a new approach — grounded in sound economics — which will test the love-hate capacity of Republicans and Democrats alike, but will result in more options, more coverage, and more fiscal transparency and prudence for the American people.

The best way forward is to resort to the free market first and then, if affordable insurance (especially for pre-existing conditions) is not obtainable, direct government subsidy would be permissible.

Read the full article as published by The Hill
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Joshua Ronen is a professor of accounting at New York University Stern School of Business and co-editor of the Journal of Law, Finance, and Accounting