What's Special About Health Care? Assumed that demand for health care downward sloping(e.g, health care use is elastic with respect to the price) assumed coinsurance rate of 20%-- the amount the insured person pays out of pocket Social experiments find that the elasticity of demand for health care is -0.206 What’s Special About Health Care? • Assumed that demand for health care downward sloping (e.g., health care use is elastic with respect to the price). • Assumed coinsurance rate of 20% -- the amount the insured person pays out of pocket. • Social experiments find that the elasticity of demand for health care is -0.20