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That's not the purpose of deductibles though... it's to put people's skin in the game - if you use insurance, you also pay for it, so it's not free for you. On
by tomp 8y ago
That's not the purpose of deductibles though... it's to put people's skin in the game - if you use insurance, you also pay for it, so it's not free for you.
On the other hand, if a provider is charging too much, they shouldn't be included in the plan in the first place, as they're simply a bad option.
- ajross 8y agoNo... the grandparent had it right. "Skin in the game" is just a colloquial restatement of the earlier point. The purpose isn't to make people needlessly suffer more by having to pay! The principle idea is that because they have to pay some, they'll be more sensitive to pricing and more willing to shop for an affordable provider, which is exactly the efficiency argument. And in this particular case I agree, even. Though the fact that this has to be done by individuals (who are sick!) sort of makes a hash of the moral notions of "the market" being the solution here. We're buying efficiency at the cost of individual grief, and that has value too.