The market for health care is characterized by which of the following?
A) significant third-party payments
B) a falling fraction of the total cost the consumers of health care actually pay
C) dramatic increases in costs because of technological advances in medical care
D) all of the above

Question

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All of the options are characteristics of the health care market.

A) Significant third-party payments: In the health care market, a significant portion of the payment for health care services is made by third-party payers such as insurance companies, employers, and the government.

B) Falling fraction of the total cost the consumers of health care actually pay: Due to the third-party payment system, consumers of health care pay a smaller fraction of the total cost of health care services.

C) Dramatic increases in costs because of technological advances in medical care: Technological advances in medical care have led to improvements in health care services, but they have also contributed to an increase in the cost of health care services.

The Market for Health Care Is Characterized by Which of the Following