Yes, it does seem like kind of a "yes, duh" conclusion.* BUT, if costs are not regulated in some form or another, then there will be many people who go without. So in the interest of social welfare we come up with ways to spread the risk.* We can have insurance.* We can have subsidies.* We can have a government run system.* Any number of options.
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Originally Posted by justin
Theory says when consumers don't have to pay (or pay very little) for what they consume, they will consume much more until the value of treatment/medicine they receive is equal to the cost they pay (in money or time).
If a simple office visit were to cost $100, that is a high threshold to seek treatment. In other words, most wouldn't pay the price for a runny nose or cough.
Only require the consumer to pay $10 copay, and all of a sudden very minor problems "need" medical attention. The value received by the office visit exceeds the consumer's cost of $10.
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The problem is that the runny nose isn't contributing much to our health care costs. It is the big expensive problems that cost a lot. And paperwork.
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