Medicare to permit value-based insurance design in Medicare Advantage plans
By increasing costs at the point of service, moral hazard can be reduced and value increased. The optimal amount of cost sharing reflects a balance between the risk and income-transfer effects of insurance against the moral hazard costs. VBID relaxes ...
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Market mayhem reveals China's moral hazard
The 'kitchen sink' approach to the market's falls would also introduce a very substantial and distortive strain of moral hazard to China's markets -- an implicit guarantee of government intervention to limit investor losses. Once moral hazard is ...
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The Threat of 'Too Big To Fail' Banks
In turn, this form of moral hazard creates an incentive effect for banks to perform inefficiently and possibly creating economic losses. For instance, if the amount of investments in risky assets increases significantly then bailouts and public ...
Read more on The Market Mogul
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