Many health insurers require a deductible where the policyholder pays the first part of any loss. The use of a deductible most directly treats the problem of:
A) free riding.
B) adverse selection.
C) people going uninsured.
D) moral hazard.

Question

Quizplus · Accepted Answer

The use of a deductible directly treats the problem of moral hazard, which refers to the tendency of individuals to undertake more risk when they are less responsible for the consequences of that risk. By requiring a deductible, health insurers can encourage policyholders to take more responsibility for their own health and make more informed decisions about healthcare utilization. This can help to reduce the overall cost of healthcare by reducing unnecessary or excessive utilization.

Many Health Insurers Require a Deductible Where the Policyholder Pays