NBER Working Papers and Publications
|January 1997||Implicit Budget Deficits: The Case of a Mandated Shift to Community-Rated Health Insurance|
with David F. Bradford
in Tax Policy and the Economy, Volume 11, James M. Poterba, editor
|March 1996||Implicit Budget Deficits: The Case of a Mandated Shift to Community-Rated Health Insurance|
with David F. Bradford: w5514
Since a typical regulatory mandate can be equated in its economic effect to a combination of an expenditure program and a tax program, observers have often suggested that it would serve consistent public policy to bring regulatory decisions into the same budgetary framework. This paper concerns an important example of a regulatory program that would mimic deficit financing in effecting a transfer of fiscal burdens toward younger and future generations, the mandated purchase of (or provision by employers of) health care insurance under a system of community rating, under which the same price is charged for health insurance for all comers, regardless of age, sex, or health condition. Such a shift would result in redistributions of burdens across birth cohorts, in this case from existing, es...