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Health insurance plans have evolved over time, and efforts to develop more affordable and inclusive plans are a cornerstone of health care reform. Why do individuals purchase health care insurance? What factors might influence decisions to purchase (or not purchase) health care insurance? One influencing factor might be the concept of moral hazard which basically asserts that people take undue risks because they are not fully responsible for the consequences. A basic example is that more people visit doctors because they have health insurance, which in turn drives up the cost of health care services. The result is that insurance companies seek to limit moral hazard by imposing co-payments prior to treatment and higher premiums.
Explain the concept of moral hazard. Consider whether or not it has a detrimental impact on public health initiatives.
With these thoughts in mind:
A brief description of your concept of moral hazard. Explain whether or not it might have a detrimental impact on public health initiatives and why. Justify your response.
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