Markets Without Magic
How Competition Might Save Medicare

  • Title:

    Markets Without Magic
  • Format:

    Paperback
  • Paperback Price:

    15.00
  • Paperback ISBN:

    978-0-8447-4261-8
  • Paperback Dimensions:

    5.5'' x 8.5''
  • 71 Paperback pages
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Click here to read the full book as an Adobe PDF.

There is no magic that can preserve Medicare as we know it today. As the baby boomers age and medical advancements spur costlier health services, this enormously popular program--which helps to pay the health care costs of 43 million seniors and disabled Americans--is headed for financial crisis. The tax burden that Medicare creates is on track to more than triple within the next three decades. Eventually, politicians will be forced to renege on Medicare's promise of virtually unlimited resources for health care. We must find a way to slow the rate of growth in taxpayer-financed funding for Medicare in order to make the program financially sustainable.

In Markets Without Magic: How Competition Might Save Medicare, Mark V. Pauly argues that unavoidable limits on Medicare financing can best be imposed through market-based choices rather than government direction. Policymakers face a fundamental challenge: how to preserve Medicare's ability to provide its beneficiaries with financial protection and access to effective medical care while securing the advantages of competition.

Pauly argues that a voucher system could provide full coverage for the poor, ensure that all seniors have access to a minimum level of coverage, and empower consumers to make decisions about their health care. Converting Medicare to vouchers would create a neutral Medicare market, set realistic limits on the growth in spending, promote efficiency, and give seniors the freedom to choose the plan most suitable for them at the quality level they prefer.

In the short run, bringing competition to Medicare will save money for beneficiaries and improve the quality of health care; in the long run, it may save Medicare.

Mark V. Pauly is the Bendheim Professor and professor of health care systems, business and public policy, insurance and risk management, and economics at the Wharton School of the University of Pennsylvania and an adjunct scholar at the American Enterprise Institute.

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About the Author

 

Mark V.
Pauly

  • Mark V. Pauly is the Bendheim Professor in the Department of Health Care Management;  professor of health care management, insurance and risk management, and business and public policy at the Wharton School; codirector of the Roy and Diana Vagelos Life Sciences and Management Program; and professor of economics in the School of Arts and Sciences at the University of Pennsylvania. A former commissioner on the Physician Payment Review Commission, Mr. Pauly has served on the advisory committee to the Agency for Health Care Research and Quality and on the Medicare Technical Advisory Panel. He currently serves on the National Advisory Council for the National Institutes of Health National Center for Research Resources, the National Academy of Sciences' Committee to Study the Veterinary Workforce, and its Committee on the Biomedical Workforce. He has been a consultant to the Congressional Budget Office, the Office of the Secretary of the US Department of Health and Human Services (which supported some of his work on individual health insurance), and health trade associations. Mr. Pauly is a coeditor-in-chief of the International Journal of Health Care Finance and Economics and an associate editor of the Journal of Risk and Uncertainty.  


  • Phone: 2158986861
    Email: pauly@wharton.upenn.edu

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