The fact that most medical care purchases are financed through insurance
A) has no effect on health care consumption because aggregate costs are the same regardless of payment method.
B) reduces the amount of health care consumed by raising the price of additional units of care.
C) has decreased health care costs and therefore reduced aggregate health care expenditures.
D) increases the amount of health care consumed by reducing the price of additional units of care.

Question

Quizplus · Accepted Answer

When medical care purchases are financed through insurance, the out-of-pocket cost to the individual is lowered. This can lead to an increase in the amount of health care consumed because the price of additional units of care is reduced. People may be more likely to seek medical attention or undergo medical procedures if they do not have to pay the full cost out of pocket.

The Fact That Most Medical Care Purchases Are Financed Through