Date of Award
Master of Arts (MA)
Jeffrey R. Hummel
Health Care, Induced Demand, Life Expectancy, Medical Insurance, Moral Hazard, Subsidies
Economics; Health care management; Medical ethics
Health-care consumption in the United States has risen from 5.2% in 1960 to 17.8% of 2009 Gross Domestic Product (GDP) creating a burden that will soon be too heavy for the economy to bear. This paper proposes that the primary accelerants of health-care expenditures result from the third-party payer system that emerged in the 1950s. These corporate benefits and government subsidies, when overlaid on the traditional health-care model, have led to sustained increases in the production, recommendation, and consumption of health care while magnifying the moral hazard problem inherent in health insurance.
Thomas, David Chandler, "Advisor Induced demand and Moral Hazard in the Third-Party Payor System" (2012). Master's Theses. Paper 4176.