Health care differs from other industries because the goal of policy is to protect individuals from financial ruin in the event of serious illness; once nearly everyone has such insurance, the price mechanism is short-circuited, leaving only second- or third-best methods of limiting spending and weak incentives for uniformity.

causalpending

Speaker

Henry Aaron

Evidence Quote

this is the one industry in which the goal of policy both private and public really is to protect individuals from financial ruin... in the event of serious illness that's called health insurance

Source

Henry Aaron on Health Care Costs 11/15/2007EconTalk
Created: 6/15/2026, 9:20:32 AM

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