Reinhardt_TheGermanModel

Reinhardt_TheGermanModel - April 17, 2009, 7:02 am Health...

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April 17, 2009, 7:02 am Health Reform Without a Public Plan: The German Model By Uwe E. Reinhardt Uwe E. Reinhardt is an economics professor at Princeton. In the previous two posts , I sought to explain why the public health insurance plan that Barack Obama had firmly promised during the presidential campaign appears to have become a deal-breaker in President Obama’s quest to sign a genuinely bipartisan health reform bill later this year. What if that plan were sacrificed on the altar of bipartisanship? Would it be the end of meaningful health reform? Not necessarily, if the health systems of the Netherlands, Germany and Switzerland are any guide. None of these countries uses a government-run, Medicare-like health insurance plan. They all rely on purely private, nonprofit or for-profit insurers that are goaded by tight regulation to work toward socially desired ends. And they do so at average per-capita health-care costs far below those of the United States — costs in Germany and the Netherlands are less than half of those here. To see how this can work, think of the basic functions that any health system must perform. To wit: 1. the financing of health care , that is, the extraction of the required funds from individuals and households who ultimately pay for 100 percent of all health care 2. the pooling of individual risks with the aim of protecting individuals and households from the high costs of medical care in case of illness 3. the purchasing of health care
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This note was uploaded on 02/25/2012 for the course 360 290 taught by Professor Dankelemen during the Spring '11 term at Rutgers.

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Reinhardt_TheGermanModel - April 17, 2009, 7:02 am Health...

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