Final answer:
After meeting the deductible, an insurance company covers a portion of prescription costs. Deductibles, copayments, and coinsurance are all ways to share healthcare costs and mitigate moral hazard.
Step-by-step explanation:
Once a patient has met their deductible, the insurance company will reimburse a portion of the cost of filled prescriptions for the rest of the year. A deductible is the maximum amount out-of-pocket a policyholder must pay before the insurance company covers the remaining expenses. Other forms of cost-sharing with health insurance include copayments, which are flat fees paid at the time of service, and coinsurance, where the policyholder pays a certain percentage of the costs. These methods are designed to reduce moral hazard by having the insured bear some of the costs before collecting insurance benefits.