Per person, health care costs tend to be _____ when _____.

Question

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When everyone has health insurance, the demand for healthcare services increases, which raises the overall cost of healthcare. This is partly due to the moral hazard problem, where insured individuals may overuse healthcare services because they are not bearing the full cost of their care. Therefore, per person, healthcare costs tend to be higher when everyone has health insurance.

Per Person, Health Care Costs Tend to Be _____ When