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| n |
Having
insurance can change the way in
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which we act.
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| n |
Moral hazard
can affect any insurance market
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but is a
particularly serious problem for health
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care
insurance. Consumers who are insured
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have an
incentive to over-consume health
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care -to
demand operations and treatments
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which they
would not choose if they were
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directly
paying for them.
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| n |
They may
also not bother to follow a healthy
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lifestyle or
to get preventative checkups.
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| n |
As a result
when they do fall ill, the cost of
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treatment is
higher than it would otherwise
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have been.
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