In the text we discuss the U.S. healthcare system as a third-party payer system: When you receive Show more In the text we discuss the U.S. healthcare system as a third-party payer system:
In the text we discuss the U.S. healthcare system as a third-party payer system: When you receive Show more In the text we discuss the U.S. healthcare system as a third-party payer system:
When you receive healthcare in the U.S. generally you are not paying for it; you are paying for insurance and your insurance pays for the healthcare. Hence the payment is being made by a third party your insurance company. The result is: People purchase more healthcare than they would if they were paying for it themselves. Your discussion question is this: What I just described could also apply to auto insurance! Most people have car insurance and when they get in an accident its the insurance company paying to repair their car; the money is not coming out of the drivers pocket (any more than the money for medicine is coming out of the patients pocket). But in the market for auto repairs we do not see a situation where people purchase more repairs than they would if they had to pay for it themselves! Why not? Auto insurance is also a third-party payer system. Whats different about car insurance? Show less
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