Article Summary
An Organisation for Economic Co-operation and Development (OECD) report states that administration costs for health care in the United States are the highest in the developed world, accounting for over 8 percent of spending in the health care sector, compared to a global average of about 3 percent. According to the report, expensive surgeries, high pharmaceutical costs, and corrupt practices increased global health care costs, and poor coordination between health care providers, duplication of tasks, and excessive time spent on paperwork all contributed to higher administrative costs. The report also noted that administrative costs are generally lower under government-managed health care systems than with private insurance, but governments could still significantly cut spending and improve patients' health.
Source: Alanna Petroff, "U.S. health care admin costs are double the average," money.cnn.com, January 11 2017.
-For a given level of compensation, the ________ a firm pays for your health insurance, the ________ it will pay you in wages.

Question

Article Summary
An Organisation for Economic Co-operation and Development (OECD) report  states that administration costs for health care in the United States are the highest in the developed world, accounting for over 8 percent of spending in the health care sector, compared to a global average of about 3 percent. According to the report, expensive surgeries, high pharmaceutical costs, and corrupt practices increased global health care costs, and poor coordination between health care providers, duplication of tasks, and excessive time spent on paperwork all contributed to higher administrative costs. The report also noted that administrative costs are generally lower under government-managed health care systems than with private insurance, but governments could still significantly cut spending and improve patients' health.
Source: Alanna Petroff, "U.S. health care admin costs are double the average," money.cnn.com, January 11 2017.
-For a given level of compensation, the ________ a firm pays for your health insurance, the ________ it will pay you in wages.

Quizplus · Accepted Answer

If a firm pays more for health insurance, it has less money to pay employees in wages. Therefore, the more a firm pays for health insurance, the less it will pay in wages to maintain a given level of employee compensation.

Article Summary An Organisation for Economic Co-Operation and Development (OECD) Report