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In the beginning health insurance was provided by some businesses as an employee benefit and it was not controlled by the government. In many other Western countries health care is not provided by employers but rather by the government and it is paid for through universal taxes.
When one of us visits our doctor, or has a medical procedure done - with supply and demand what do we base our purchase on- the actual cost or what is our co-pay? The price and demand to the recipient of health care is what comes out of their pocket at the time of purchase. The health insurance company provider is what is called a "third party payer".
Discuss what if there was not a third party payer. A patient was billed for the full medical service then sent the bill to the insurance company for reimbursement .
How would this system effect supply/demand and price?
Please write in own words. don't be very detailed.
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