Healthcare system as third-party payer system

Assignment Help Business Economics

Reference no: EM131170865

DISCUSSION QUESTION:

Healthcare system as a "third-party payer" system: When you receive healthcare in the U.S. generally you are not paying for it; you are paying for insurance, and your insurance pays for the healthcare. Hence, the payment is being made by a third party, your insurance company. The result is: People purchase more "healthcare" than they would if they were paying for it themselves.

Your discussion question is this: What I just described could also apply to auto insurance! Most people have car insurance, and when they get in an accident it's the insurance company paying to repair their car; the money is not coming out of the driver's pocket (any more than the money for medicine is coming out of the patient's pocket). But in the market for auto repairs we do not see a situation where people "purchase" more repairs than they would if they had to pay for it themselves! Why not? Auto insurance is also a third-party payer system. What's different about car insurance?

Reference no: EM131170865

Questions Cloud

Propose to help keep the informal system intact : The value of informal long-term care provided by family members and friends is estimated at over $450 billion annually, more than double the national expenditures for skilled nursing and home care combined. Would you support government assistance for..

Review relevant data available from federal governments : Read International Environmental Agreements Among Asymmetric Nations and review relevant data available from federal and local governments, including data from the United States Environmental Protection Agency.

Therefore has monopoly on the sale of fresh flowers : Juanita maintains the only greenhouse in isolated Point Barrow, Alaska, and therefore has a monopoly on the sale of fresh flowers. Her hired-gun statistician estimates that the elasticity of demand for her flowers is -0.5. Is Juanita maximizing her p..

Generate options for solving the problem in the scenario : Write a four to five (4-5) page paper in which you: Define the problem in the scenario that you have chosen. Analyze the problem in the scenario. Generate options for solving the problem in the scenario

Healthcare system as third-party payer system : Healthcare system as a "third-party payer" system: When you receive healthcare in the U.S. generally you are not paying for it; you are paying for insurance, and your insurance pays for the healthcare. Hence, the payment is being made by a third part..

Principal form of capital that flows between countries : What is the principal form of capital that flows between countries?

Denominators for percentage change calculations : Average visits per week equal 640 when the copayment is $40 and 360 when the copayment is $60. Calculate the percentage change in visits, percentage change in price, and price elasticity of demand using 640 and $40 as the denominators for percentage ..

What did each of the individuals contribute to the world : How was each contribution rooted in creative thinking; that is, how did each change existing paradigms of seeing or experiencing the world?

What is the total population of your community : If everyone in your community recycled as much trash as you did for one week, how much garbage could your area recycle? To calculate this number, you can use your number and multiply it by the number of people in your community.

User Account

All Pages