Being insured can be worse than not being insured

Many people are worried about incurring a large medical bill when they fall sick. They buy insurance to be protected against the large bill.

To avoid the long waiting time, they buy insurance to be covered for treatment in a private hospital and pay a much higher premium.

They may not realize that being insured for medical expenses in a private hospital can be worse than not being insured. How can this be so? What is the paradox.

Here is the answer.
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