National Health Insurance Might Be Good for Capitalism

Health insurance has emerged as a central issue in the Democratic presidential primary contest. The major candidates are divided between those who favor a national health-insurance system -- commonly referred to as Medicare for All -- and those who favor letting the government compete with private insurers, sometimes known as the public option. Either way, Democrats seem certain to make a big push for some sort of expansion of health insurance.

The typical justification given for national health insurance is that it would make coverage universal. Though Obamacare reduced the uninsured population significantly, about one out of 10 non-elderly Americans still lack coverage. Another oft-cited advantage is that national health insurance would require lower out-of-pocket payments -- deductibles and co-pays -- than most private plans, reducing hassle and anxiety. A third selling point is that national health insurance would be funded largely through taxation, meaning that there would lots of redistribution, with the wealthy and the upper-middle class paying for the health care of lower-income Americans.