When I started looking into healthcare cost issues, I sought advice from six physicians on two minor medical conditions. For one of the conditions, doctor advice ranged from in-office procedures to hospital surgeries. When questioned about costs, one of the hospital-surgery doctors said, “It’s covered by insurance.” 

The idea that costs are unimportant because they are covered by insurance is a moral hazard. The term simply means that people that do not pay the bills often do not think about the consequences. Unnecessary spending is likely.
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