2015Spring_Semester_Medical_Care_and_Health_Insurance_Lec_3_D_S.pdfVIP

Medical Care and Health Insurance Demand and Supply of Health Insurance Shu-Fang Shih, MBA, MS, Ph.D. Department of Health Promotion and Health Education National Taiwan Normal University Spring 2015 WHAT IS INSURANCE? A Simple Example • Consider a club with 100 homogeneous members. It seems that about once a year one of the 100 members gets sick and incurs health care costs of $5,000. The incidence of illness seems to be random. Club members, worried about potential lo