Are high deductible health plans a good thing? Republicans typically argue yes as they say that increased cost sharing reduces moral hazard. That is, when people have to pay for medical care out of pocket, they don’t ask for unnecessary care or use care more frugally.
Democrats typically argue that increased cost-sharing reduces demand for effective health care, decreases medication adherence, and may even increase long-term cost if foregoing effective care results in higher downstream medical cost.
