How Can an Insurance Company Reduce the Moral Hazard Problem

question 48

Multiple Choice

How can an insurance company reduce the moral hazard problem?

• A) Impose a coinsurance where patients pay for a percentage of their medical care expenses,pay none of the medical expenses associated with preventive care,and raise deductibles.
• B) Impose a coinsurance where patients pay for a percentage of their medical care expenses,pay all of the medical expenses associated with preventive care,and raise deductibles.
• C) Eliminate patients' responsibility to pay for a percentage of their medical care expenses,pay all of the medical expenses associated with preventive care,and raise deductibles.
• D) Impose a coinsurance where patients pay for a percentage of their medical care expenses,pay all of the medical expenses associated with preventive care,and lower deductibles.
• E) There is no way to reduce the moral hazard problem.

---

Definitions:

IT Components

The physical and virtual parts of an information technology system, including hardware, software, networks, and data storage solutions.

Remote Supervision

The oversight and guidance of employees or projects from a distance, typically using digital communication technologies.

Computerization

The process of applying computer technology to automate tasks, manage data, and support operations in various fields and industries.

Middle Managers

Individuals within an organization who manage the work of subordinate employees and report to a higher-level manager, responsible for implementing the organization's strategies and policies.