Does Private Insurance Make Health Care More Efficient?
An article in The Economist magazine examines some of the assumptions about how private insurance affects health care access, quality, and cost:
OTTO VON BISMARCK believed that the ordinary worker:
“…is unsure if he will always be healthy and he can predict that he will reach old age and be unable to work. If he falls into poverty, and be that only through prolonged illness, he will find himself totally helpless.”
So in 1883 Germany’s Iron Chancellor introduced a health-insurance law that required both companies and workers to contribute to the costs of care.