Dec. 18 (Bloomberg) -- The revelation that many plans in
the Patient Protection and Affordable Care Act’s health
insurance exchanges have high deductibles has put many of the
law’s conservative opponents into a corner: Once in favor of
high deductibles, these critics of Obamacare are suddenly
worried about the risk to consumers. The data show why their new
position makes more sense.
In economics, the principle of moral hazard holds that
people who have insurance that is too comprehensive tend to
spend more than they should, because they’re protected from the
cost of their actions. Many people, especially conservatives,
believe that reversing the moral hazard can reduce health
spending, because increased exposure to cost will make consumers
more discriminating.
