Health Insurance and Public Policy: Risk, Allocation, and Equity

By Miriam K. Mills; Robert H. Blank | Go to book overview

a reduction in federal guarantee payments, and a necessity for large subsidies from state revenues to maintain the system.

The experience with the Guaranteed Student Loan (GSL) Program suggest several ways in which defaults could be minimized. First, the loan should be backed by strong collateral by the borrower. These need not include the limited assets that the borrower needs for her--or himself and her or his family. They could include future income payments--even if the worker relocates out of state--and retirement benefits if the worker never returns to the work force. States already operate interstate agreements for managing the UI system. These could be extended to allow the imposition of the UI surcharge to repay debts owed to out-of-state agencies.

Second, the job of collecting delinquent payments should be contracted with a private financial institution. Public agencies rarely have the resources and the flexibility to collect effectively. Under the GSL program, when public agencies turned over bad loans they had failed to collect to private financial institutions, nearly half the money owed was returned.

In several states the entire student loan program is operated by private financial institutions. These tend to enjoy lower default rates and costs. This approach would be possible for HIL loans providing that the employment service would cooperate in certifying workers eligible for the loans--a process that could coincide with the determination of UI benefit eligibility.

Ultimately, if default rates prove uncomfortably high despite these measures, it may be necessary to limit the term of eligibility or the maximum amount that can be borrowed. If the fiscal integrity of the program is maintained, it will be possible, over time, to evolve an effective loan program that does not require massive public subsidies yet meets a clearly identified need.


CONCLUSION

The unemployed need temporary help to maintain coverage for themselves and their families. Layoffs create temporary financial problems that, despite some well-intentioned but ineffective federal and state policies, result in most displaced workers losing health insurance coverage. For those who suffer illness, the financial consequences may be grave.

The Health Insurance Loan Program would offer the unemployed the chance to purchase health insurance from private vendors and to repay the loan when they returned to work. Purchasers would also be given information describing the health insurance options they can adopt and a comparison of the prices of premiums from companies offering individual coverage within the state.

The program should be entirely self-supporting, with repayments covering the amortization and interest costs of the loans. Delinquent loans would require a surcharge or repayments.

-71-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Health Insurance and Public Policy: Risk, Allocation, and Equity
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 228

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.