Marginal cost is called Marginal Cost in English
It refers to the marginal increment.
LZ, you don’t understand what “marginal” means. . . . It means unit increment
What this means is that the cost that people spend on medical insurance is equivalent to abusing medical care to obtain marginal benefits, so that people will not deliberately abuse medical insurance to benefit.
But the theory that opposes this theory also says that in this case, the significance of medical insurance will be greatly reduced.
In economics, one of the most basic theories is MC=MR, that is, Marginal Cost = Marginal Revenue, unit cost increment (marginal cost) = unit revenue increment (marginal revenue).
When MClt;MR, people will tend to continue doing it. Putting it in the case of medical insurance, that is to say, when the marginal cost is lower than the marginal benefit, that is, when the benefits people get from abusing medical care are greater than the money they pay to medical insurance companies, people tend to abuse medical insurance more. This This is what no one wants to see.
When MCgt;MR, people tend to reduce what they are currently doing. In this case, it means that people pay more to insurance companies than they get from medical insurance, and people are unwilling to insure. This is also something managers don’t want to see, because it increases the risk of people getting seriously ill and unable to afford treatment.
Only when MC=MR, this is a balanced state. People are willing to insure but will not abuse medical insurance.