How do findings of the Rand Health Insurance Experiment reinforce the relationship between growth in third-party reimbursement and increase in health care costs?

The Rand Health Insurance Experiment supports the relationship between growth in 3rd party reimbursement and increase in health care costs. This plan cost-sharing lowers the total costs compared to a free plan with a 25% patient co-insurance resulted in a 19% decline in expenditures.

In this patients or consumers do not typically pay for the most of health benefits and services used. Cost-sharing leads to lowering utilization costs. It does not affect the morality risk or measures of health even lower utilization case.