Moral hazard with health insurance Insured people take risks with their health that similar uninsured people would not take,and demand more expensive treatment from their doctors when they get sick. Moral hazard is the downside of health insurance because it raises society's level of health care expenditures. Bhattacharya,Hyde and Tu-HealthEconomics Bhattacharya, Hyde and Tu – Health Economics Moral hazard with health insurance • Insured people take risks with their health that similar uninsured people would not take, and demand more expensive treatment from their doctors when they get sick. • Moral hazard is the downside of health insurance because it raises society’s level of health care expenditures