I investigate whether a decrease in a prescription drug's out-of-pocket cost increases risky behaviors due to ex-ante moral hazard. Understanding the role of ex-ante moral hazard is crucial, given its implications for preventable health issues and healthcare expenditures. In a difference-in-difference setting, I leverage the staggered implementation of U.S. state-level policies lowering insulin out-of-pocket costs. Focusing on privately insured households with diabetes and using household-level scanner data on grocery purchases, I find that the out-of-pocket cost reduction results in an increase in risky behaviors due to ex-ante moral hazard. In particular, the findings show a temporary increase in carbohydrate purchases (4.8%) and a sustained increase in sugar purchases (9.3%), which can lead to adverse health effects. I rule out alternative explanations, such as an income effect, for the observed ex-ante moral hazard. In addition, I find evidence of a sustained increase in healthcare utilization, highlighted by higher sales of diabetes supplies.