Universal Healthcare: We Already Know How to Do This

We spend more for fragmented healthcare than comparable countries do for universal care, and get far worse outcomes.


“Medicare for All” is a phrase with a lot of political baggage, so set it aside. What it describes is simpler: extending a system Americans already built to the rest of the population. This piece uses “universal healthcare” from here on, because that’s what it is.

Medicare works. It covers every American over 65, regardless of employment status or health history. It operates with administrative overhead of roughly 2%, compared to 12-15% for private insurers. It negotiates prices, it pays claims, and it has done so for sixty years. We know how to do this because we already do it.

Healthcare doesn’t work like a normal market.

You can’t comparison shop during a cardiac event. You don’t choose when to have a stroke. Every wealthy country that looked honestly at these conditions reached the same conclusion: healthcare cannot be organized around market competition.

The American system has grown around a different goal. The administrative apparatus — prior authorizations, claim denials, billing complexity — exists to protect revenue, not deliver care. The clinical judgment of a trained physician is overruled by a clerk or algorithm with no medical expertise and every financial incentive to deny.

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What Does Medicare for All Mean?

The Insurance Pool

Health insurance is a mechanism for pooling risk. Medicare for All is a proposal for extending an existing version of that mechanism to everyone. This piece explains both — how insurance works, where it went wrong, and what “Medicare for All” actually means.

Health insurance is a mechanism for spreading financial risk across a large population so that no single person bears the catastrophic cost of serious illness alone. Everyone pays in, and everyone draws down when needed. Across a lifetime, most people are sometimes healthy, and sometimes need medical care. The function of insurance is to spread the cost of care across users. Insurance functions differently from a normal consumer market.

A productive market system (fair profit for a valuable service) requires something insurance cannot provide: a real exit option. A functioning market depends on customers who can walk away — who can comparison shop, switch providers, or go without. Competition disciplines prices and quality only when exit is possible. Remove the exit and you remove the mechanism that makes markets work.

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