Insurance – Why Healthcare Isn't Econ 101 | Wharton Economist Mark Pauly

In this episode, we’re speaking with Dr. Mark Pauly, - a founding figures of modern health economics - about how we can build a better healthcare and insurance system.From the origins of moral hazard to the political journey of the individual mandate, Dr. Pauly explains how policy choices ripple across the system. He breaks down why healthcare markets defy Econ 101 logic, why costs feel higher even when spending has flattened, and how externalities, from contagion to altruism, justify public involvement. He also reveals why tax subsidies for employer insurance quietly distort the market more than most people realize, and why fixing incentives may matter more than any new program.