The growth of medical insurance in general and first-dollar coverage specifically has reduced the marginal cost of treatment paid by the consumer.Therefore,the current level of medical treatment in the United States is

Question

Quizplus · Accepted Answer

First-dollar coverage reduces the out-of-pocket cost for consumers, leading to overconsumption of medical services, which results in a level of treatment greater than the efficient level.

The Growth of Medical Insurance in General and First-Dollar Coverage