When it comes to attempts of managed care to control costs, cutting prices is one of the most popular methods. Which of the following is not among the valid explanations of the rationale behind this practice?
A) Price cuts would put money directly into the pocket of patients.
B) Compared to other methods, prices are easier to cut.
C) Large insurers have bargaining power to negotiate lower prices with providers.
D) When certain markets go through periods of excess supply, large insurers use it to negotiate lower prices.
E) Large insurers can threaten providers with taking the patients away unless discounts are provided.
Correct Answer:
Verified
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