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Alvita Ukrainskiy
on Dec 11, 2024

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Economic theory indicates that as a larger share of medical services are paid for by a third party (for example, insurance companies or the government) rather than directly by the consumer,

A) consumers will have a stronger incentive to economize.
B) consumers will have a weaker incentive to economize and the prices of medical services will rise more rapidly than would otherwise be the case.
C) consumers will have a weaker incentive to economize, but medical service suppliers will have a stronger incentive to keep prices low.
D) the suppliers of medical services will have more incentive to economize.

Medical Services

These refer to the diagnostic, therapeutic, and rehabilitative services provided by health professionals to treat patients and maintain their well-being.

Third Party

An entity that is involved in a transaction or agreement but is neither the principal nor the direct beneficiary, often providing intermediary services.

Incentive

An incentive is a stimulus or mechanism implemented to motivate individuals or entities to take certain actions or make specific decisions.

  • Examine the principles of economic theory as they pertain to third-party payment systems and their impact on the costs and outlays in healthcare.
  • Understand the influence of healthcare funding arrangements on healthcare pricing and fiscal incentives.
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Freddy MeansDec 17, 2024
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