Which statement is INCORRECT about why the government provides insurance?

• A. Stimulate economic development
• B. Increase availability of health coverage
• C. Ensure social needs are being met
• D. Reduce fraudulent claims

Answer: (D)

Government-provided insurance aims to spread risk, protect people from financial hardship, and support the economy. It helps stimulate economic development by giving individuals and businesses the confidence to invest and hire without bearing catastrophic risks. It increases the availability of health coverage so more people can access needed care, which also supports productivity and overall public health. It also ensures social needs are met by providing a safety net for those who would otherwise fall through the cracks. Reducing fraudulent claims is important for keeping programs financially sound and ensuring proper use of funds, but it isn’t a fundamental reason governments offer insurance. The core purpose is to broaden access, protect welfare, and stabilize the economy, not primarily to curb fraud.