Explaining the excessive health insurance in the United States Many economists believe that the United States health system has become too reliant on health insurance, especially for small or routine expenditures. They believe that excessive insurance exacerbates the moral hazard problem and thereby drives up healthcare costs. Which of the following is largely responsible for the problem of excessive insurance?
a. Government insurance through Medicare and Medicaid
b. Private health insurance provided through employers
c. Primary care physicians
d. The Veterans Health Administration
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