National health insurance (NHI) can be "financed" by requiring employers to pay insurance premiums for employees and their families. The costs in 1980 for any such programs can be estimated through a series of tables provided in this paper. In addition, often-unanticipated side effects of mandated NHI are analyzed, including decreases in federal tax receipts (because of a shift in employee income from taxable wages to a nontaxable fringe benefit), temporary increases in unemployment as firms adjust to higher costs of employment per worker, and the methods by which firms would adjust to the new environment. The paper also contains updated estimates to mandated NHI costs previously undertaken by the author.
This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.
Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit www.rand.org/about/principles.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.