Question

Select the best description of the incentive for each of the following participants based on the current U.S. health care system.

Consumers will ______________

a. request the fewest treatments to save time

b. have no incentive to consume more or less medical care

c. request as much treatment as possible to maximize healthcare benefits

Producers will _______________

a. have no incentive to consume more or less medical care

b. prescribe as much treatment as possible to increase profit

c. prescribe fewer visits and procedures to save time

Intermediaries will ______________

a. have no incentive to consume more or less medical care

b. allow as few treatments as possible to maximize profit

c. allow any treatment that might be possibly help a patient

Answer 1

Question 1

With respect to the current US healthcare system,

Consumers tends to request as much treatment as possible to maximize the health care benefits.

Hence, the correct answer is the option (c).

Question 2

With respect to the current US healthcare system,

Producers tends to prescribe as muh treatment as possible. Such strategy maximizes their revenue and profit.

Hence, the correct answer is the option (b).

Question 3

With respect to the current US healthcare system,

Intermediaries that is the organizations that provide health insurance services wants to allow as few treatments as possible so that their dispensation of claims will be lower and their profit can be maximized.

Hence, the correct answer is the option (b).