The Political Economy of Health in the United States

Abstract

The United States pays a high price for its health system, and governments pay about half the costs. At the same time, the United States distinguishes itself by failing to provide health insurance for 15% of its population. In this article, I review research on the politics and economics of health to investigate three questions. Does this spending represent good value? Why does the United States spend so much on health? Finally, what technical and political challenges do policy makers face as they turn away from government solutions and toward market-based solutions to the challenge of balancing costs, access, and quality?