Demand for a medical service is price inelastic. Medical services are different from most other goods and services in that the person who determines the demand (the patient) is not the person who makes the payment (payment is made by the insurance company). How does this affect the price elasticity of demand for medical services (increase it or decrease it)? You may assume this question refers to people who have health insurance. Give an explanation.

Medical services are absolutely essential, regardless of who is paying the bill. Prices of medical supplies and services may vary from time to time, depending on different economic factors, availability, quality, etc. However, the demand for these products is almost always high. In some cases, the demand for a certain drug or service increases when a disease is prevalent in that area. In this case, the cost of treatment and drugs for the disease may go up in that area. Despite this, if a patient covered by their insurance company is treated, the insurance company has to pay. Therefore, this increases the price elasticity of demand since more and more people are likely to take the services anyway.