We think that this standard theory misrepresents the choices
facing many persons with low incomes and few assets, who buy
insurance primarily to protect their health. Most persons with low
and moderate incomes could not possibly pay for the care they
would need if they were uninsured and became seriously ill. They
might be forced to deplete their assets and then hope to receive free
care or qualify for Medicaid or another public program. The risk to
health and future earnings for such persons can be substantial.