Zimram Ahmed says:
I agree with Arnold that people are irrational when it comes to thinking about healthcare, and that part of this irrationality expresses itself as a preference for insulation coverage over catastrophic coverage. I’ve certainly felt the urge, to pick the healthcare plan that covers the most stuff when having to make that decision.
I don’t think this is any less rational than preferring all you can eat Internet over paying for bytes transferred. People don’t want decision making transaction costs interfering with import decisions.