Moral hazard means that people with insurance may take greater risks because they know they do not bear the full … consequences of their actions. This can occur with both private insurance and social insurance. Deductibles can be used to … alleviate the problem. An interesting way to bring deductibles into social insurance is to establish individual social accounts …

Moral hazard means that people with insurance may take greater risks because they know they do not bear the full … consequences of their actions. This can occur with both private insurance and social insurance. Deductibles can be used to … alleviate the problem. An interesting way to bring deductibles into social insurance is to establish individual social accounts …