In Chapter 8, The Market for Health Insurance “Moral Hazard” was posited as a phenomenon
where a persons behavior is affected by their insurance coverage (D, 201). Describe an example of a health
service that may be over or under utilized (in the face of moral hazard) given a type of insurance. You may
use any one of the types of insurance plans found on pages 60 through 64. (200 words)
Book to use as reference Dewar, D. M. (2017). Essentials of Health Economics. Overview of the U.S.
Healthcare System (pg. 3). Burlington, MA: Jones and Bartlett.
PART 2. Next, respond to one of your fellow student’s moral hazard posting. In no more than 150 share
your opinion about the behavior and the potential impact on others consumers of the insurance plan.
STUDENT POST: ” Health care organization (HMO) is a type of insurance plan where the health care
provider agrees to providing health services to the insured, and in return accepts reimbursement in the form
of a fixed fee. Members of an HMO are assigned a primary care provider (PCP), which acts as a pathway
for members to seek out health services. For instance, if the insured needs to see a specialist then the PCP
must authorize and refer the patient to the specialist. In lieu of the PCP’s authorization, the patient will be
denied insurance coverage for the unauthorized health service. Due to the nature of HMO plans, health
services with a PCP would be over utilized because the PCP “serves as a gatekeeper responsible for
authorizing any health care provided” (Dewar, 2017).”