Optimal Health Insurance and Trade-Off between Health and Wealth

Table 1

Parameter values for the illustration model.

Parameter	Symbol	Value
The insured gets mild illness and		0.5
The insured gets severe illness or critical illness and		0.1
Safety loading		0.2
Initial wealth		15
Initial health status		0.9
Severity of health degeneration after treatment		0.3
Intensity parameter under Case 3		0.2
Intensity parameter under Case 2		0.1
The maximum health expenditure		10