When neither the patient nor the doctor is cost conscious as a result of health insurance, economists label this the

Question

Quizplus · Accepted Answer

When both the patient and the doctor are insensitive to the cost of healthcare services due to insurance coverage, it creates a moral hazard problem. The insured person may use healthcare services more than necessary, and doctors may order extra tests or procedures that are not truly required because the cost is not a factor for either party. Moral hazard can result in higher insurance premiums and lower overall quality of care.

When Neither the Patient nor the Doctor Is Cost Conscious