An article in the Economist argues that the real problem with health insurance is: The healthy people

Question:

An article in the Economist argues that the real problem with health insurance is: The healthy people who decide not to buy insurance out of rational self-interest, and who turn out to be right. By not buying insurance, those (largely young) healthy people will be failing to subsidize the people insurance is meant for: the ones who end up getting sick.
a. Why is it rational for healthy people not to buy health insurance?
b. Do you agree that health insurance is meant for people who end up getting sick?
c. Why is the situation described here a problem for a system of health insurance? If it is a problem, suggest possible solutions.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

Question Posted: