In the health insurance context, moral hazard occurs when patients make less healthy choices and doctors provide treatments that have little medical benefit because they know the costs will be covered by insurance.

Question

Quizplus · Accepted Answer

Moral hazard refers to the behavior of insured individuals and healthcare providers that increases costs for insurers, such as making less healthy choices or providing unnecessary medical treatments because they are insulated from the full cost by insurance.

In the Health Insurance Context, Moral Hazard Occurs When Patients