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In: Economics

Based on economic theory, why would utilization of hospital emergency room care increase when a previously...

Based on economic theory, why would utilization of hospital emergency room care increase when a previously uninsured population receives health insurance coverage? Explain and provide reasons.

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Expert Solution

Since the health care facilities are relatively costly in the USA. Without insurance facilities, a large chunk of society can not afford it. If these people are not provided with insurance facilities, then they would not be capable financially enough to visit hospitals.

Now after insurance facilities, many people would be visiting emergency services, so now hospital facilities at emergency would be utilized appropriately.

Rahul Sunny answered 2 years ago
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