Why Doesn’t the United States Have National Health Insurance? The Political Role of the American Medical Association
This study examines a critical juncture in the development of health insurance in the United States. We examine how the American Medical Association (AMA) reduced support for National Health Insurance (NHI) in the immediate post-World War II period and contributed to the entrenchment of private insurance coverage. The AMA’s national campaign against NHI - directed by the country’s first political public relations firm, Whitaker & Baxter’s Campaigns, Inc. - implemented a two-pronged strategy: (1) persuade the American voter that supporting NHI was equivalent to supporting socialism; and, (2) enroll working-age adults (and eventually their dependents) in private health insurance plans to reduce demand for a public scheme. We bring together archival data from several novel sources documenting Campaign operations, which involved leveraging mass communications, the professional network, and the social standing of physicians. We find a one standard deviation increase in Campaign exposure explains approximately 20% of the increase in private health insurance enrollment and a similar decline in public opinion support for legislation enacting NHI. We present several findings that suggest the Campaign influenced policymaking directly: via passage of Campaign-drafted resolutions by civic organizations, adoption of Campaign language in Congress, and donations to the 1952 Republican presidential candidate through an AMA-WB political action committee. These findings suggest that the rise of private health insurance in the U.S. was not solely due to wartime wage freezes, collective bargaining, or favorable tax treatment. Rather, it was also enabled by an interest group-financed Campaign.
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Copy CitationMarcella Alsan and Yousra Neberai, "Why Doesn’t the United States Have National Health Insurance? The Political Role of the American Medical Association," NBER Working Paper 32484 (2024), https://doi.org/10.3386/w32484.Download Citation
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