The article explores the economic effects of expanding US health insurance, focusing on public and private components. By using a model that considers health and labor market risks, the researchers found that expanding Medicare to all workers can improve overall welfare. Setting the coinsurance rate of this universal public health insurance higher than current Medicare rates is key. Allowing private insurance alongside public plans reduces costs and increases welfare gains. Financing public health insurance through consumption taxes leads to better outcomes than income or payroll taxes. Mandating employer-sponsored health insurance for all workers under the current system can also lead to welfare improvements.