Health insurance companies have the goal of reducing payments to doctors and hospitals.One way they have done this is by requiring individuals to pay a deductible.For example,a $1,000 deductible means that individuals are responsible for the first $1,000 in health care expenses over the course of a year.In terms of incentives,explain how the presence of a deductible reduces expenses for the health insurance company.

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The Answer of Health insurance companies have the goal of reducing payments to doctors and hospitals.One way they have done this is by requiring individuals to pay a deductible.For example,a $1,000 deductible means that individuals are responsible for the first $1,000 in health care expenses over the course of a year.In terms of incentives,explain how the presence of a deductible reduces expenses for the health insurance company.

Health Insurance Companies Have the Goal of Reducing Payments to Doctors