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Health insurance and the demand for medical care

By David de Meza

Abstract

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
OAI identifier: oai:eprints.lse.ac.uk:35484
Provided by: LSE Research Online
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