In a captivating discussion, Amy Finkelstein, an MIT economist and co-author of "Risky Business," dives deep into the flaws of insurance markets. She tackles the quirky topic of why divorce insurance doesn’t exist and suggests a rebranding as marriage longevity insurance. Finkelstein explores adverse selection challenges and the impact of regulatory frameworks on health coverage. Using personal anecdotes, she highlights the complexities of insurance and shares innovative ideas for improving market efficiency and expanding coverage options.

The economist Amy Finkelstein explains why insurance markets are broken and how to fix them. Also: why can’t you buy divorce insurance?

Amy Finkelstein, a distinguished economist from MIT and expert on adverse selection, dives into the complexities of insurance markets. She explains how information imbalances can lead to market inefficiencies, impacting both insurers and consumers. The discussion highlights the disconnect between health insurers and clients, revealing how wellness initiatives often miss the mark. Finkelstein also explores the ethics of truthfulness in insurance disclosures and the implications of policies like the Affordable Care Act on pricing and risk assessment.

How can public policy improve upon and fix the mess of U.S. health care? In a new book, health economists Amy Finkelstein (MIT) and Liran Einav (Stanford) argue that's the wrong question. Instead, they suggest we ask: What is it that U.S. health policy should try to accomplish?Finkelstein, also a MacArthur Genius grantee, joins Bethany and Luigi to discuss health care as a social commitment and to make the case for free, automatic, and universal coverage for a basic set of medical services. She argues why the current patchwork system of incremental reforms isn't the answer, why insurance is not the lever to reduce racial disparities in health inequality, and why we must “tear down the system and build from the ground up.”Finkelstein and Einav's new book, "We've Got You Covered: Rebooting American Health Care," is out now.Show Notes: On ProMarket, read:Lowering the Barriers to Entry for Economics Research in Healthcare, by Filippo LancieriRethinking How To Achieve Universal Health Care Coverage in the U.S., by Katherine Baicker, Amitabh Chandra, and Mark ShepardMore Than 20 Years of Consolidation Have Led to a Dysfunctional Health Care Market, by Martin GaynorThe Secret Driver of U.S. Health Care Costs: Politicians Wanting to Get Reelected, by Asher Schechter

In this lively discussion, Amy Finkelstein, a health economist from MIT and co-author of "We've Got You Covered", teams up with Mark McClellan, former FDA commissioner and Duke University professor specializing in health policy. They dive into the urgent need for U.S. healthcare reform, dissecting political dynamics and comparing international models. The talk covers risk adjustment in insurance, the complexities of funding healthcare innovations, and critiques the high spending versus poor outcomes paradox. Together, they explore a vision for a fairer and more efficient system.