A second demand-related costeffect will result from the fact that insurance,(even with deductibles andcopayments, drives a wedge between the cost of a service and its price, and soincreases demand.
Speak with an accountant to see how you can maximize the benefits and paycheck you have, perhaps by increasing your contributions to "cafeteria" plans or raising deductibles.
Limits of indemnity and deductibles in respect of each and every accident:
If you have higher deductibles, your premiums are lower.
Copayments and deductibles can be increased to make people think harder about whether they want expensive treatments of marginal efficacy.
Good drivers are stuck with high deductibles-just as in Spence's model of education, highly productive workers must fork out for an education in order to prove their worth.
As they face huge out-of-pocket expenses, deductibles and “co-payments” for operations, they are increasingly heading overseas to cheaper facilities.