Consider this calibrated model of U.S. health insurance in 2019 under adverse selection: Demand for insurance: P = 26,000 75 Q Marginal cost: MC = 13,000 41.67 Q Average cost: AC = 13,000 20.83 Q where Q is millions of Americans aged 0-64. With these parameters, it turns out that the market equilibrium is Q* = 240 million, which is where P = A0 = 8,000. Also, Omx = 275 million, or with 35 million or 12.7% of the population under age 65 still uninsured. (If you solve for the equilibrium using the symbolic math equations and parameters printed above, which are rounded, you get very similar numbers: 0* = 239.99 and P = 8,001.) Demand exceeds marginal cost at Q* and all the way up to Qma". Thus the annual social loss of underinsurance is the area of a trapezoid between 0* and Qmax and between demand and marginal cost, which equals $154583 billion. (With symbolic math it is $154.687.)