The moral hazard myth

August 29, 2005
The New Yorker

“Moral hazard” is the term economists use to describe the fact that insurance can change the behavior of the person being insured. John Nyman, an economist at the University of Minnesota School of Public Health, says that the fear of moral hazard lies behind the thicket of co-payments and deductibles and utilization reviews which characterizes the American health-insurance system.

Click here to read the article in the August 29 issue of The New Yorker.