Which of the following reforms could help to improve the operation and efficiency of health-care markets?
A) equalizing the tax treatment of out-of-pocket medical expenses and the direct purchase of health insurance with that of health insurance purchased through an employer
B) encouraging consumer use of health savings accounts and the direct payment of medical bills from the accounts
C) encouraging the purchase of catastrophic health insurance and discouraging the purchase of policies with first-dollar coverage and small co-payments
D) All of the reforms listed above could help to improve the situation.

Question

Quizplus · Accepted Answer

Equalizing the tax treatment of out-of-pocket medical expenses and the direct purchase of health insurance with that of health insurance purchased through an employer could increase competition and choice in the health insurance market. Encouraging the use of health savings accounts and the direct payment of medical bills from the accounts could give consumers more control over their health-care spending and encourage them to seek out low-cost, high-quality care. Encouraging the purchase of catastrophic health insurance and discouraging the purchase of policies with first-dollar coverage and small co-payments could also help to control rising health-care costs and encourage individuals to take more responsibility for their health-care spending. Therefore, all of these reforms could have a positive impact on the operation and efficiency of health-care markets.

Which of the Following Reforms Could Help to Improve the Operation