Disincentive

An undesirable “reward” for undesired behavior. For example, as part of efforts to reduce hospital and physician costs, patients are sometimes required to pay the first dollars for services; this payment may be a deductible, copayment, or coinsurance. The deductibles are a “disincentive” (a negative incentive) to seek the care, and thus an incentive to be frugal.


 


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