Insurance companies use deductibles and coinsurance to reduce moral hazard.

Name: Insurance companies use deductibles and coinsurance to reduce moral hazard.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Deductibles and coinsurance require the policyholder to pay a portion of the cost of healthcare services, which reduces the likelihood of overutilization and misuse of healthcare services. This is known as reducing moral hazard.

Insurance Companies Use Deductibles and Coinsurance to Reduce Moral Hazard