If new legislation allowed patients to sue their health-maintenance organization (HMO),we would expect the supply curve for HMO-provided health care to shift to the left and the price of such coverage to rise.

Question

Quizplus · Accepted Answer

Allowing patients to sue their HMOs would increase the risk and potential costs for HMOs, leading to a decrease in the supply of HMO-provided health care. This would cause the price of such coverage to rise as HMOs try to cover their increased costs.

If New Legislation Allowed Patients to Sue Their Health-Maintenance Organization