Why is it argued that the fee-for-service method of determining medical expenses/costs has contributed to rising health care costs?

Question

Why is it argued that the fee-for-service method of determining medical expenses/costs has contributed to rising health care costs?​

Quizplus · Accepted Answer

The fee-for-service method incentivizes healthcare providers to prescribe more services because they are reimbursed based on the number of services provided. This can lead to unnecessary tests and treatments that drive up healthcare costs.

Why Is It Argued That the Fee-For-Service Method of Determining