If the provision of medical insurance encourages people to take more health risks because they know they can receive treatment, then health insurance

A) produces an asymmetric information problem.
B) leads to a universal access problem.
C) causes a defensive medicine problem.
D) creates a moral hazard problem.

Health Risks

Potential factors or behaviors that can lead to disease, injury, or other health problems.

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the risk because another party will incur the cost.

Medical Insurance

Health coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.