Question

In the Rand Health Insurance Experiment, total spending was lower for consumers who paid part of the cost of care. True or false

Answer 1

False.

Basically Rand Health Insurance Experiment compared the situation between free cost of care/full cost of care covered under health insurance and paid part of the cost of care. (Paid part of the cost care means despite of government and insurance benefits consumers also have to contribute in the cost of their health care.) So, now total spending was higher than free of cost care/full cost of care covered under health insurance, and same has resulted in less utilisation of needed medical care, because now consumer have to pay for insurance premium as well as part of the Cost of care as well. So now they've to spend two time(ie Insurance Premium and Part of the cost care) for their health care despite of just one time payment of insurance premium.