Low levels of deadweight loss from moral hazard

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A. True/False Explain. Indicate whether each of the following statements is true or false and then explain why you think this. Include in your explanation any pertinent institutional details and economic reasoning (including appropriate graphs and equations). Please provide concise, clear answers with minimal irrelevant detail. Explanation is required.

1. In consumer-directed health insurance plans it is possible to have low levels of deadweight loss from moral hazard, while also having low coinsurance rates and no supply-side restrictions.

2. State policies that mandated the release of physician report cards, which contained information about the risk-adjusted mortality rates of the patients of cardiac surgeons, were greatly beneficial to consumers by allowing them to more efficiently search for high quality surgeons.

Reference no: EM13974851

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