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Health insurance and the demand for medical care

By David de Meza


With rare exceptions the provision of actuarially fair health insurance tends to substantially increase the demand for medical care by redistributing income from the healthy to the sick. This suggests that previous studies which attribute all the extra demand for medical care to moral hazard effects may overestimate the efficiency costs of health insurance

Topics: HD Industries. Land use. Labor, RA Public aspects of medicine
Publisher: Elsevier
Year: 1983
DOI identifier: 10.1016/0167-6296(83)90011-5
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Provided by: LSE Research Online
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