What is meant by financing? What are its desirable and undesirable effects? 300 word n less
By financing, we mean any mechanism that gives us the ability to
pay for health care services we avail.
The desirable outcome: it enables people to obtain health care, and
it compensates the providers for the services they provide.
The desirable outcome: it leads people to consume more health care
(MORAL HAZARD or excessive demand), this leads to curtailment in
the supply of services especially when reimbursement is curtailed,
providers have a tendency to induce demand when services are
financed through insurance
premium=monthly payment
deductible=amount needed before insurance actually kicks in
copayment=percentage you need to pay out of pocket at the point of
purchase
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