Botulinum Toxin,marketed Under the Brand Name "Botox" Is a Drug

Essay

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.)