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Botox and Migraines
Botulinum toxin, marketed under the brand name "Botox" is a drug that paralyzes muscles into which it is injected. It is one of the few promising treatments for migraine headaches, which affect about 10% of the population. Migraine headaches are debilitating, but there is no objective way to diagnose them. Thus migraine headaches are relatively easy to fake. Botox is also very popular as a cosmetic treatment to get rid of wrinkles.
If you are a small business, should you offer insurance coverage for Botox treatments for migraine headaches? (HINT: moral hazard.)
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