The fundamental problem of health policy is presented in Figure 1.13. Countries that have single-payer or other universal health insurance systems, such as Canada and Germany, face this problem, as does the United States. How might health policy try to address the fundamental problem in the context of universal health insurance? Identify specific programs or strategies that might be used, and consider their potential benefits and drawbacks.

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Marginal cost/benefit C C Marginal benefit of healthcare True economic cost Cost the patient sees Q FIGURE 1.13 The fundamental problem of healthcare. Q Quantity of healthcare