(Solved):How might a health insurance plan seek to reduce the use of moral hazard by its beneficiaries? View Answer…

 

Question

How might a health insurance plan seek to reduce the use of moral hazard by its beneficiaries?

 

EXPERT ANSWER

There are a number of solutions to reduce moral hazard in health insurance:

  • Share cost: by sharing the cost such as with coinsurance, the beneficiary has some intensive to reduce risk
  • Deductibles: by having the beneficiary pay for smaller costs they assume all risk of smaller health problems such as broken bones. Larger problems which
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