The Theory of Demand for Health Insurance Nyman Hardback John Wiley & Sons

The Theory of Demand for Health InsuranceAuthor(s): John A. Nyman\nFormat: Hardback\nPublisher: Stanford University Press, United States\nImprint: Stanford University Press\nISBN-13: 9780804744881, 978-0804744881\nSynopsis\nWhy do people buy health insurance? Conventional theory holds that people purchase insurance because they prefer the certainty of paying a small premium to the risk of getting sick and paying a large medical bill. Conventional theory also holds that any additional health care that consumers purchase because they have insurance is not worth the cost of producing it. Therefore, economists have promoted policiescopayments and managed careto reduce consumption of this additional, seemingly low-value care.\n\n This book presents a new theory of consumer demand for health insurance. It holds that people purchase insurance to obtain additional income when they become ill. In effect, insurance companies act to transfer insurance premiums from those who remain healthy to t.