Supply and Demand
At the same times as a good number merchandise and requires hold to the essential financial standard of provide and require, in a lot of ways medical treatment does not. The standard of provide and require explains an equilibrium that increases among the contribute of an thing or examination and the require for it. The up-and-down is that of cost. There is a straightforward equilibrium in which as cost set increases; require decreases, and vice versa. Usually, make available reproduces stipulate as who would maintain to increase manufactured goods or provide a repair for which insist has dropped.
The difficulty in medical treatment is that the customer frequently disburses small or not anything for services, regardless of the present realism of uninsured amount and copayments. As soon as this is the folder, value discontinues individual an issue in insist and demand enlarges to almost limitless points.
There was a time when my health insurance cost me nothing, individual had no deductible and no copayment. So I had no out-of-pocket expenses whatsoever associated with healthcare. Now I really don't like going to the doctor, so it did not matter to me all that much, individual still did not use a great deal of care. But many people, when costs are not a factor, use services at the drop of a hat.
This is the reality that triggered the current healthcare crisis. Even now, despite out-of-pocket costs, utilization is at record levels. People even tend to feel that since they are paying more for premiums (though nothing close to what employers are paying), they should get their money's worth. There is little to stop them from using services except the managed care initiatives that have been implemented in the last 20 years to address this situation. People in the first half of the 20th century paid for healthcare themselves and were cautious about