How do copayments and deductibles reduce risk?
Co-payments and deductibles reduce a great deal of risk because they're forcing the insured to pay a portion of their own care. If a person has a deductible of $500, the person is likely to be more cautious by taking better care of their health and engaging in less risky behaviors because the person knows that if he or she needs medical care, they must pay the first $500 out of their own pocket before ...
The solution explains how copayments and deductibles reduce risk. This is a question from health management accounting.