The best books on the economics and history of American health insurance

Why am I passionate about this?

My mother wanted me to be a physician, but as a child I was very squeamish about human biology and knew that wasn't for me. In college I was exposed to economics and found it, and the policy debates about national health insurance, fascinating. So, maybe with my mother’s wishes in the back of my mind, I became a health economist. I was privileged to direct a large randomized trial called the RAND Health Insurance Experiment, which varied the cost of medical care to families. This project lasted more than a decade and got me so deep into the economics of health and medical care that I became a professor of health policy and management.



I wrote...

Pricing the Priceless: A Health Care Conundrum

By Joseph P. Newhouse,

Book cover of Pricing the Priceless: A Health Care Conundrum

What is my book about?

This book is the Walras-Pareto Lectures, given at the University of Lausanne in 1997. It takes up the economics of how to reimburse providers of medical care such as hospitals and physicians and is based on the author’s experience as chair of a standing Congressional Commission, the Medicare Payment Advisory Commission, that annually recommends to the Congress what the American Medicare program should pay.

Shepherd is reader supported. When you buy books, we may earn an affiliate commission.

The books I picked & why

Book cover of Who Shall Live? Health, Economics And Social Choice

Joseph P. Newhouse Why did I love this book?

Eminently readable, this is a classic book by the doyen of American health economics that explains in non-technical terms the economics of health and medical care. It has been updated with several essays that Fuchs has published in the almost five decades since the book was first published.  

By Victor R Fuchs,

Why should I read it?

1 author picked Who Shall Live? Health, Economics And Social Choice as one of their favorite books, and they share why you should read it.

What is this book about?

Since the first edition of Who Shall Live? (1974), over 100,000 students, teachers, physicians, and general readers from more than a dozen fields have found this book to be a reader-friendly, authoritative introduction to economic concepts applied to health and medical care.Health care is by far the largest industry in the United States. It is three times larger than education and five times as large as national defense. In 2001, Americans spent over $12,500 per person for hospitals, physicians, drugs and other health care services and goods. Other high-income democracies spend one third less, enjoy three more years of life…


Book cover of The Social Transformation of American Medicine: The Rise of a Sovereign Profession and the Making of a Vast Industry

Joseph P. Newhouse Why did I love this book?

Another classic book that describes the history of American medicine and organized medicine’s interactions with the political process. 

It is necessary background to understand the predominance of employment-based health insurance and why the 2010 Affordable Care Act was such a breakthrough. Starr is a Princeton sociologist who participated in the 1990s debate on the failed Clinton health insurance plan.

By Paul Starr,

Why should I read it?

1 author picked The Social Transformation of American Medicine as one of their favorite books, and they share why you should read it.

What is this book about?

Winner of the Pulitzer Prize and the Bancroft Prize in American History, The Social Transformation of American Medicine is a landmark history of the American health care system, examining how the roles of doctors, hospitals, health plans, and government programs has evolved over the last two centuries. Beginning in 1730 and coming up to the present day, renowned sociologist Paul Starr traces the transformation of our national health care system into a private corporate medical institution that dominates the field and threatens the sovereignty of the medical profession. In this new and revised edition, Paul Starr will bring his research…


Book cover of The Heart of Power: Health and Politics in the Oval Office

Joseph P. Newhouse Why did I love this book?

In individual chapters, this book describes every American President’s approach to health policy from Franklin D. Roosevelt to George W. Bush (it omits Gerald Ford). 

It describes their personal and familial interactions with health and medical care as well as their foibles and habits. It is a fascinating read, especially for those of an age who personally lived through some of these Presidents.

By David Blumenthal, James Morone,

Why should I read it?

1 author picked The Heart of Power as one of their favorite books, and they share why you should read it.

What is this book about?

Even the most powerful men in the world are human - they get sick, take dubious drugs, drink too much, contemplate suicide, fret about ailing parents, and bury people they love. Young Richard Nixon watched two brothers die of tuberculosis, even while doctors monitored a suspicious shadow on his own lungs. John Kennedy received last rites four times as an adult, and Lyndon Johnson suffered a 'belly buster' of a heart attack. David Blumenthal and James A. Morone explore how modern presidents have wrestled with their own mortality - and how they have taken this most human experience to heart…


Book cover of Risky Business: Why Insurance Markets Fail and What to Do About It

Joseph P. Newhouse Why did I love this book?

This book, by three eminent economists who themselves have advanced the theory of insurance markets, describes in non-technical terms exactly what its title promises, why insurance markets fail. 

In other words, it describes why public intervention is necessary to make insurance function well. The public intervention can take many forms, ranging from subsidies to national health services, but no industrialized country leaves health insurance entirely to a private market.

By Liran Einav, Amy Finkelstein, Ray Fisman

Why should I read it?

1 author picked Risky Business as one of their favorite books, and they share why you should read it.

What is this book about?

An engaging and accessible examination of what ails insurance markets-and what to do about it-by three leading economists

Why is dental insurance so crummy? Why is pet insurance so expensive? Why does your auto insurer ask for your credit score? The answer to these questions lies in understanding how insurance works. Unlike the market for other goods and services-for instance, a grocer who doesn't care who buys the store's broccoli or carrots-insurance providers are more careful in choosing their customers, because some are more expensive than others.

Unraveling the mysteries of insurance markets, Liran Einav, Amy Finkelstein, and Ray Fisman…


Book cover of The Quality Cure: How Focusing on Health Care Quality Can Save Your Life and Lower Spending Too

Joseph P. Newhouse Why did I love this book?

Almost all Americans think the high cost of health care is a major problem and a large number think access to services is also a problem. 

Many, however, think that if a person has access to medical care and good insurance, quality of care is excellent. That’s sometimes true, but often not as this book describes.

By David Cutler,

Why should I read it?

1 author picked The Quality Cure as one of their favorite books, and they share why you should read it.

What is this book about?

In the United States, the soaring cost of health care has become an economic drag and a political flashpoint. Moreover, although the country's medical spending is higher than that of any other nation, health outcomes are no better than elsewhere, and in some cases are even worse. In The Quality Cure, renowned health care economist and former Obama advisor David Cutler offers an accessible and incisive account of the issues and their causes, as well as a road map for the future of health care reform--one that shows how information technology, realigned payment systems, and value-focused organizations together have the…


You might also like...

Book cover of Benghazi! A New History of the Fiasco that Pushed America and its World to the Brink

Ethan Chorin Author Of Benghazi! A New History of the Fiasco that Pushed America and its World to the Brink

New book alert!

Why am I passionate about this?

Author Story-lover Middle East expert Curious Iconoclast Optimist

Ethan's 3 favorite reads in 2023

What is my book about?

Benghazi: A New History is a look back at the enigmatic 2012 attack on the US mission in Benghazi, Libya, its long-tail causes, and devastating (and largely unexamined) consequences for US domestic politics and foreign policy. It contains information not found elsewhere, and is backed up by 40 pages of citations and interviews with more than 250 key protagonists, experts, and witnesses.

So far, the book is the main -- and only -- antidote to a slew of early partisan “Benghazi” polemics, and the first to put the attack in its longer term historical, political, and social context. If you…

By Ethan Chorin,

Why should I read it?

1 author picked Benghazi! A New History of the Fiasco that Pushed America and its World to the Brink as one of their favorite books, and they share why you should read it.

What is this book about?

On September 11, 2012, Al Qaeda proxies attacked and set fire to the US mission in Benghazi, Libya, killing a US Ambassador and three other Americans.  The attack launched one of the longest and most consequential 'scandals' in US history, only to disappear from public view once its political value was spent. 

Written in a highly engaging narrative style by one of a few Western experts on Libya, and decidely non-partisan, Benghazi!: A New History is the first to provide the full context for an event that divided, incited, and baffled most of America for more than three years, while silently reshaping…


5 book lists we think you will like!

Interested in health care, economics, and health?

11,000+ authors have recommended their favorite books and what they love about them. Browse their picks for the best books about health care, economics, and health.

Health Care Explore 59 books about health care
Economics Explore 388 books about economics
Health Explore 116 books about health