I'm as Mad as Hell and I'm Not Going to Take This Anymore: On Indignation and Health Care

David J. Balan, Federal Trade Commission

Abstract

This paper begins with the idea that patients become “indignant” when they are denied care at their preferred provider, even if the denial is justified under the patient’s insurance policy, and consequently take actions that impose costs upon their insurers or employers. I develop a simple model to explore the effects of such patient indignation on provider prices and profits, as well as on the number of uninsured, total social welfare, and consumer welfare.