Use the following to answer question(s): Third-Party Payers

-(Exhibit: Third-Party Payers) When the price of $20 per visit becomes available to the consumer because of insurance:
A) health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance.
B) health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance.
C) the new quantity of physician office visits is 1 million visits per week.
D) both A and C are true.

Question

Use the following to answer question(s): Third-Party Payers
 
-(Exhibit: Third-Party Payers) When the price of $20 per visit becomes available to the consumer because of insurance:
A) health-care costs become $180 million, of which $60 million is paid by consumers and $120 million is paid by insurance. 
B) health-care costs become $180 million, of which $120 million is paid by consumers and $60 million is paid by insurance. 
C) the new quantity of physician office visits is 1 million visits per week. 
D) both A and C are true.

Quizplus · Accepted Answer

When the price is reduced to $20 per visit due to insurance, the total healthcare costs become $180 million, with $60 million paid by consumers and $120 million covered by insurance.

Use the Following to Answer Question(s): Third-Party Payers