Final answer:
The study indicates that cost-sharing mechanisms like deductibles and copayments can discourage moral hazard in healthcare, leading individuals to consume less medical care without negatively affecting their health status.
Step-by-step explanation:
One study that illustrates the connection between moral hazard in healthcare and out-of-pocket costs found that when individuals have health insurance with moderate deductibles and copayments, they consume about one-third less medical care compared to those with complete insurance coverage who don't pay anything out of-pocket. The inference is that deductibles and copayments are effective in reducing the level of moral hazard because people know they will have to contribute financially to their care. Despite consuming less healthcare, these individuals' health status appeared unaffected, suggesting that higher healthcare spending does not necessarily correlate with better health outcomes. In the broader context, the United States experiences higher healthcare expenditure per capita compared to other countries, yet this does not translate into better health outcomes, which tend to be influenced more by diet, exercise, and genetics than by healthcare spending. The cost-sharing mechanisms like deductibles and copayments serve to mitigate the moral hazard associated with health insurance by instilling cost-awareness among insured individuals.