Health insurance policies include deductibles:
A)to minimize moral hazard.
B)because when it comes to health, most people are risk-averse.
C)because it is too expensive to insure fully a person's health.
D)because health insurance companies often own hospitals.

Question

Quizplus · Accepted Answer

Deductibles are included in health insurance policies to minimize moral hazard, which is the tendency for people to take more risks or use more services when they are not bearing the full cost of those services.

Health Insurance Policies Include Deductibles