Read Maclolm Gladwell's piece, "The Moral Hazard Myth" http://www.newyorker.com/archive/2005/08/29/050829fa_fact?currentPage=all http://www.newyorker.com/archi

Read Maclolm Gladwell's piece, "The Moral Hazard Myth" http://www.newyorker.com/archive/2005/08/29/050829fa_fact?currentPage=all http://www.newyorker.com/archive/2005/08/29/050829fa_fact?cu... "For that matter, when you have to pay for your own health care, does your consumption really become more efficient? In the late nineteen-seventies, the rand Corporation did an extensive study on the question, randomly assigning families to health plans with co-payment levels at zero per cent, twenty-five per cent, fifty per cent, or ninety-five per cent, up to six thousand dollars. As you might expect, the more that people were asked to chip in for their health care the less care they used. The problem was that they cut back equally on both frivolous care and useful care. Poor people in the high-deductible group with hypertension, for instance, didn’t do nearly as good a job of controlling their blood pressure as those in other groups, resulting in a ten-per-cent increase in the likelihood of death."