Question

You anticipate that a major insurer will increase the copay from $10 to $20. This insurer...

You anticipate that a major insurer will increase the copay from $10 to $20. This insurer covers 80,000 visits per year. If the expectation is that visits will decrease 25%, what is your forecast of the change in the number of visits?

Select one:

a. Visits will decrease by 10,000.

b. Visits will decrease by 16,000.

c. Visits will decrease by 40,000.

d. Visits will decrease by 20,000.

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Homework Answers

Answer #1

Given that :

Insurers will increase copay from $10 to $20.

Visits per year = 80,000 people

Expectation= increase in price will lead to 25% decrease in visits.

Hence , visits will decrease by 25% on total number of normal visit.

Visits decrease by = total visit × percentage of decrease, (80,000×25%)

Visits decrease by = 20,000 people

Answer- (d)

All other options are eliminated, as the decrease in visits is by 20000 people. Hence option (a) ,(b),(c) are wrong.

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