Should The Government Buy Kidneys?

Kidney Shortage

Rohin Dhar thinks so:

What’s the advantage of letting Medicare buy kidneys instead of creating a free market? First, it would save Medicare and private insurers money since the current cost of dialysis for people on the waitlist is so high. These parties have a financial incentive to consider a plan like this.

Second, a government-regulated system can address concerns about equity. Rather than rich people privately contracting poor people to buy their kidneys, the government and the UNOS can continue to allocate purchased kidneys based on need (Objection 1). Moreover, the risk for organ thieves is eliminated in this scenario (Objection 2). Would an organ thief show up at the Medicare office with bag of kidneys? Instead, individuals would have to go through an approval process to ensure that they are not selling their organ under duress and understand the risks.

(Chart from Mark Perry)