The lack of caution exhibited by individuals and families who are privately insured is an example of moral hazard.

Question

Quizplus · Accepted Answer

Moral hazard refers to the increased risk-taking behavior that results when individuals or entities are insulated from the consequences of their actions. In the case of healthcare, those who are privately insured may be more likely to seek unnecessary or expensive medical treatments because they are not directly responsible for the cost of those treatments. This behavior can drive up healthcare costs for everyone, including those who are uninsured or have lower levels of coverage.

The Lack of Caution Exhibited by Individuals and Families Who