3 Responses to “Ow Health Care Insurance Results In An Overallocation Of Resources To The Health Care Industry.?”

1. Jim Says:
   July 22nd, 2009 at 10:15 pm

   Health insurance acts as a price reducer. You may be paying premiums, but when you go into the doctor and get a bill you are only paying a portion of this bill. If consumers had to pay the full amount the effective price has increased which naturally lowers their demand. This is why when people do not have health insurance they do not go in to the physician until things are really bad.
   Additionally, many types of health insurance have annual out of pocket maximums. Once you reach your max for the year you don’t have to pay for anything else (except perhaps some small co-pays). This can result in people going into the physician when they really don’t need to.

2. Zaireen b Says:
   July 23rd, 2009 at 1:05 am

   Consumer behavior directly depicts human behavior: to attain as much benefits as possible by incurring the minimum costs.everyone is a consumer in one way or the other and health care is a necessity.everyone needs it but everyone is not able to afford the costs of health insurance.the other thing is people do invest in health care insurance with a question in mind:what happens to the money if we don’t make any claims.

3. justbein Says:
   July 23rd, 2009 at 8:04 am

   Health insurance costs too damn much of my resources to be able to afford it. You pay and pay up front, and may or may not get anything out of it on the back end, and you can’t get the $ back if you don’t make claims.

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