Excess Health Insurance


Health Economics

  • A much-discussed issue in the US where the excessive use of health insurance has been controversially held to account for massive welfare losses. Although insurance normally provides benefits that exceed its costs, through generating a lower price at the point of consumption of health care it also encourages the use of health care beyond the point at which its marginal value is equal to its marginal cost of production. Whether that is a bad thing is not to be taken as given since it rather depends, amongst other things, on whether there are any relevant externalities.
  • synonymOverinsurance
    (written as excess health insurance)