Question

Insurance companies often have both a fixed premium regardless of health care expenditures and a variable...

Insurance companies often have both a fixed premium regardless of health care expenditures and a variable co-pay that the consumer must pay for every visit to the doctor. Identify and explain the motive for this payment structure in insurance plans.

Homework Answers

Answer #1

Answer -. The co payment rule by the insurance companies , on every visit to the doctor helps to resolve the problem of the Moral Hazard which is prevalent in the insurance contracts. When the insurer will impose the co payments on every visit , this will increase the cost to the insured person , he will pay more attention to his health , in order to avoid going to doctor and paying the amount to insurer. Hence this reduces the risk of moral hazard to the insurance company.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Insurance companies often have both a fixed premium regardless of health care expenditures and a variable...
Insurance companies often have both a fixed premium regardless of health care expenditures and a variable co-pay that the consumer must pay for every visit to the doctor. Identify and explain the motive for this payment structure in insurance plans.
1. Insurance companies often have both a fixed premium regardless of health care expenditures and a...
1. Insurance companies often have both a fixed premium regardless of health care expenditures and a variable co-pay that the consumer must pay for every visit to the doctor. Identify and explain the motive for this payment structure in insurance plans.
Laura moore has a choice at work between a traditional health insurance plan that pays 80%...
Laura moore has a choice at work between a traditional health insurance plan that pays 80% of the cost of doctor visits after a $250 deductible and an HMO that charges a $5 co-payment per visit plus a $21 monthly premium deduction from her paycheck. Laura anticipates seeing a doctor once a month for her high blood pressure. The cost of each office visit is $60. She normally sees the doctor an average of 3 times a year for other...
The federal program of health insurance for the elderly and some disabled individuals is   called Medicare...
The federal program of health insurance for the elderly and some disabled individuals is   called Medicare CHIP Medicaid VA A way of making up losses in health insurance by charging more to the insured is termed The “Robin Hood” theory Co-Payment A Premium Cost Shifting An example of Cost Sharing would be Package Pricing A Beneficiary A Co-Payment A Single Payer System The Affordable Care Act will have an impact on what portion of a select groups (high earners) pay...
A One Payer Health Delivery system is an example of Individual Behavior Social Justice The United...
A One Payer Health Delivery system is an example of Individual Behavior Social Justice The United States Health Delivery System Market Justice Which of the following groups tends to be insured Poor workers Less educated workers Ethnic minorities Full-time workers Holistic medicine seeks to treat the individual Based on the individual's disease Based on the individual's personality As a whole person Based on insurance status The term Point of Entry is a principal of A Hospital’s Admitting Room Applying for...
A One Payer Health Delivery system is an example of Individual Behavior Social Justice The United...
A One Payer Health Delivery system is an example of Individual Behavior Social Justice The United States Health Delivery System Market Justice Which of the following groups tends to be insured Poor workers Less educated workers Ethnic minorities Full-time workers Holistic medicine seeks to treat the individual Based on the individual's disease Based on the individual's personality As a whole person Based on insurance status The term Point of Entry is a principal of A Hospital’s Admitting Room Applying for...
If an insurer incorrectly estimates an insured person's premium , then the insurer will suffer a...
If an insurer incorrectly estimates an insured person's premium , then the insurer will suffer a financial loss. can appeal to the state insurance commissioner for a subsidy. will drop people whose medical expenses exceed their premium. None of the above Medicare Part B (physician and outpatient services) is financed by a premium that is 75 percent subsidized by the government and 25 percent subsidized by the aged. a payroll tax on both the employee and the employer. a premium...
What is Medicare Part C? Provides the aged with home health care Provides the aged with...
What is Medicare Part C? Provides the aged with home health care Provides the aged with prescription drugs Enables low-income aged to participate in Medicaid Provides a voluntary managed care option for the aged How is Medicaid financed? It is financed entirely by the federal government. It is financed entirely by the state. States receive the same percentage of federal support. States with lower per capita incomes receive a greater percentage of federal support If a healthcare system is "free"...
1.Which type of prescription drug is likely to be the least costly for health plan members...
1.Which type of prescription drug is likely to be the least costly for health plan members using a health plan with a tiered drug benefit? Non-Formulary generic medication Formulary generic medication Formulary brand medication Non- Formulary brand medication 2.Which of the following are not out-of-pocket costs for a health plan member? Allowed amount Health insurance prem Co payments Co insurance 3.In which type of reimbursement methodology does the medical provider have the greatest degree of financial risk? Capitated payment Global...
The questions to answer regarding the case material are as follows: Company overview . How the...
The questions to answer regarding the case material are as follows: Company overview . How the company uses its own products or services to enhance the total compensation for its employees. The internal strengths and weaknesses you identified and how the company responded to these factors from a total rewards perspective. The external opportunities and threats you identified and how the company responded to these factors from a total rewards perspective. Examples of traditional and non-traditional rewards and how they...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT