Which of the following is likely to be a solution to the moral hazard problem arising from the implementation of the Affordable Care Act (ACA)in the United States?
A) A decrease in co-payments required to be paid by policyholders when filing a claim
B) A decrease in the deductibles required to be paid by people who have insurance
C) A decrease in tax rates to curb risky behavior among Americans
D) An increase in subsidies to promote healthy choices by Americans

Question

Quizplus · Accepted Answer

Increasing subsidies to promote healthy choices is likely to be a solution to the moral hazard problem arising from the implementation of the Affordable Care Act (ACA). This is because higher subsidies have the potential to incentivize people to adopt healthier lifestyles, take preventive measures, and actively manage their health. This, in turn, can reduce the risk of adverse health outcomes and ultimately lead to lower healthcare costs.

Which of the Following Is Likely to Be a Solution