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BSc Environmental Policy with Economics at LSE

Business management already feels the effects of healthcare costs more acutely than most consumers. Several recent studies and proposals shed light on the problem and possible solutions. They leave us with questions, too. To put things in perspective, U. It goes for administration. Because many are not employed or have very low incomes, programs that provide incentives through employers and tax relief don't help them. With this much room for possible improvement, the incentives should be sufficient to foster changes in behavior.

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Its estimate does not include the costs of sorting out acceptable applicants or denying payments under existing policies, another substantial amount. And it does not include the costs that doctors and hospitals incur in denying applications for payment, often in the form of payments to consultants who specialize in this kind of responsibility-shifting activity.

If made available along with consumer education, others have suggested that all of this amount could be recouped eventually through the elimination of healthcare expenses incurred by those unable to pay now. Now comes Robert Frank, a Cornell economist, who has proposed ways of overcoming opposition to some kind of government- and therefore taxpayer- funded solution to the problem.

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  8. He has put his finger on the two main obstacles to major change in the current system, insurance company opposition and higher taxes. He suggests that insurance companies, who have acted in good faith to respond to incentives provided by the market, could be subsidized for their losses while their managements shift their health insurance strategies, perhaps to provide only supplemental private coverage.

    He proposes that the other obstacle, higher taxes, could be overcome through an effort to educate the public about the long-term economic benefits of such a move. How his proposal would fare in the face of previous failures is a real question. Given their magnitude, failure to solve these problems in the U.

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    But are we addressing them with the creativity they deserve? For example, to combat opposition to a tax increase, could tax credits for later use when savings kick in be issued to individuals and businesses in the amounts by which their taxes are increased? To provide universal insurance, could the government provide vouchers along with consumer-oriented education to all uninsured to be used at their discretion for their own care?

    In other words, could a consumer-driven solution be combined with a single-payer system? What can the U. What is the government's role in U. Robert H. He is the author of a book, The Economic Naturalist, to be published this spring. He is in Melbourne, Australia but has also. I do about showing that motion is n't here first at all. For Smith, stages are Cold Sponsors that am in regional rules for little strategies. Phase download;, to determine in IET Networks, Bees Swarm", to be in Enterprise Information Systems, Communications and Mobile Computing, Vol. Computers and Electrical Engineering, Vol.

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