Saturday, November 25, 2006

Grandpa needs an HSA

Economist Bryan Caplan describes what happens when a third-party payer covers all medical expenses:
my grandpa got $300k of elective surgery in his last year of life - bad knee, plus complications. And he was a cheap, cheap man. I doubt that he would have paid for the first $10k out of his own pocket.
That is quite a bit of deadweight loss.