The following Letter to the Editor is a response to an op-ed published in the Wall Street Journal by John Cochrane, Professor of Finance at the University of Chicago's Booth School of Business. In his letter, Cochrane critiques the Obamacare birth control mandate in terms of how it negates the "don't sweat the small stuff" theory of insurance demand, which states that overall health costs will rise if insurance covers small costs rather than catastrophic damages. My response to this article highlights some potential oversights that Cochrane makes in his analysis of this theory.
