Which of the Following Is Likely to Be a Solution

question 98

Multiple Choice

Which of the following is likely to be a solution to the moral hazard problem arising from the implementation of the Affordable Care Act (ACA) in the United States?

• A) A decrease in co-payments required to be paid by policyholders when filing a claim
• B) A decrease in the deductibles required to be paid by people who have insurance
• C) A decrease in tax rates to curb risky behavior among Americans
• D) An increase in subsidies to promote healthy choices by Americans

---

Definitions:

Taxes

Mandatory financial charges imposed by governments on individuals or entities to fund public expenditures, with failure to pay typically resulting in legal penalties.

Canada Pension Plan

A mandatory public insurance program in Canada that provides income in retirement, as well as benefits to the disabled and survivors of deceased contributors.

Contributory Benefit

A type of financial assistance that individuals receive based on their previous contributions to a welfare system, typically through taxes or specific insurance schemes.

Performance Incentives

Rewards linked to the accomplishment of specific performance targets or objectives designed to motivate and reward employees.