Health Econimic Moral Hazards

Co-pay and Moral Health What is Moral Hazard? Moral Hazard is a change of demand or behavior due to the increase or decrease in the price of health insurance. Five reasons (5) why moral health occurs, If there is a small co-pay or no co-pay consumers will take advantage of these circumstances and use excess services they may not need (1) . When employees have a monthly fee (payment) to maintain their insurance this creates a competitive market(2), …

…a shift in price it might decrease compliance. A serious problem can occur due to non -compliance and create detrimental complications, such as a heart attack, diabetic complications, or a problem with the baby. These problems could have been avoided; however, if a complication results in hospital stay this alone makes the insurance pay a higher price, just for trying to make a profit in a short period of time can backfire in the future.