The Public Interest

A new approach to national health insurance

Martin S. Feldstein

Spring 1971

A NEW approach to national health insurance is urgently needed. Our present system of financing health care provides inadequate protection, encourages inefficient use of resources, and accelerates the inflation of medical costs. Unfortunately, the proposals for national health insurance that are now being discussed will not remedy this situation. I propose to outline a different approach to national health insurance that would avoid the major shortcomings in the present system and in the previously suggested alternatives.

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