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)

This teaching guide is part of a series of materials developed, with input from adult learners, to aid adult literacy teachers in incorporating health education into the curriculum. This guide aims to help teachers to provide adult students with information about health insurance, available privately and from government programs. The guide…