Tuesday, August 24, 2004

Middle Man Mess

Arnold Kling offers an insightful look at the impact health insurance has had on our economic recovery (link via instapundit):

"A relentless rise in the cost of employee health insurance has become a significant factor in the employment slump, as the labor market adds only a trickle of new jobs each month despite nearly three years of uninterrupted economic growth.

Right now, employers do not provide insurance to employees, they sell it to them. In the future, we'll see "disintermediation" of health insurance purchasing process (employees buying direct rather than through their employer).
The consequences of health insurance disintermediation are generally favorable. It gives workers opportunities for jobs and take-home pay that otherwise would not be available. I would like to see complete disintermediation, so that health insurance is always bought directly by individuals, rather than through employers.


Post a Comment

<< Home