5 Moral Hazard and Cost Control a How does the Rand Health Insurance Experiment provide evidence that con- sumers engage in moral hazard upon having more generous insurance plans (more generous

meaning lower copayment rate)? b How does the Rand Health Insurance Experiment provide evidence that higher copayment rates (the percent of medical bills a patient is responsible for) ef- fectively reduce moral hazard? c Countries that follow the Beveridge model suffer from a moral hazard prob- lem with respect to consumers' utilization of healthcare. Name a method other than cost sharing that seeks to address moral hazard. How does this method address moral hazard?