soupy says

Service members would be offered cash if they are willing to accept reduced health care benefits for their families. “The less comprehensive plan would encourage individuals to be more cost-conscious when purchasing health care products by including deductibles, co-payments and a maximum annual out-of-pocket expenditure limit"

The moral-hazard argument makes sense, however, only if we consume health care in the same way that we consume other consumer goods, and to economists like Nyman this assumption is plainly absurd. We go to the doctor grudgingly, only because we’re sick. “Moral hazard is overblown,” the Princeton economist Uwe Reinhardt says. “You always hear that the demand for health care is unlimited. This is just not true. People who are very well insured, who are very rich, do you see them check into the hospital because it’s free? Do people really like to go to the doctor? Do they check into the hospital instead of playing golf?”...the more that people were asked to chip in for their health care the less care they used. The problem was that they cut back equally on both frivolous care and useful care.

currently Dispatch, "The General"

# posted by stacey : 12:31 PM