Read: "Restoring Health Freedom: The Case for a Universal Tax Credit for Health Insurance," by Sue A. Blevins.

Questions

1. Explain why Blevins argues that the government subsidizes third-party insurance?
2. Why does the current tax system result in distortions?
3. Why might the existence of third-party insurance lead to higher levels of utilization of medical services?
4. While HMOs tend to lower the cost of medical services, the author argues that HMOs induce a distortion in consumer choice. Explain.
5. Do you find the argument in support of medical savings accounts convincing? Why or why not?