Why do health insurance companies impose deductibles on policies and co-pays on claims?

Question

Quizplus · Accepted Answer

Health insurance companies impose deductibles on policies and co-pays on claims to reduce moral hazard problems. This means that the insured is less likely to engage in risky behavior or use healthcare services excessively because they bear a portion of the cost. This helps to control healthcare costs for both the insurer and the insured.

Why Do Health Insurance Companies Impose Deductibles on Policies and Co-Pays