Today, 01:21 PM
When you don't pay the full cost for something, you demand more of it than if you did actually have to pay your full costs. People want insurance to pay for everything for them and then complain that their insurance costs too much when it is their usage which helps drive up those costs. With insurance, we can make personally rational decisions but socially irrational ones. Say you get sick. You can go to the drug store and pick up some medicine- $8 for a bottle of asprins, $10 for cough medicine, $20 for a decongestant. Or go to the doctor and besides the cost of the visit, get a prescription for a cough suppressant, a fever reducer, and a pain reliever. In co-pay you maybe paid $10 each for the prescriptions or $30. The over the counter medicines would have run you $38 so going to the doctor was cheaper. But doctor charged say $100 for the visit and the prescription were billed at $50 each (random numbers). That means that what was cheaper for you out of pocket cost significantly more (and that cost was added to your next insurance bill so you don't see the connection) in real life.
If you have coverage, you also likely go to see the doctor when you really didn't need to- again, adding to the total costs of providing health care.