A nationwide survey of 604 families living with multiple sclerosis found average duration of the disease was 10 years; family income was above the national median; in 28 percent of the families, health insurance was inadequate to cover illness costs; and, overall, factors other than income and amount of health insurance determined the economic…

Presents a relatively simple costs/benefits analysis problem perfectly suited for an introductory economics course. Reveals that neither the health insurer (which bears only the hospitalization costs of acute care) nor the patient (who incurs lost earnings and psychological costs) has an adequate incentive to pay for preventive care. (MJP)