Third-party payer systems are most likely to ________ the quantity of health care ________.
A) increase; demanded
B) decrease; demanded
C) not change; supplied
D) decrease; supplied

Question

Quizplus · Accepted Answer

Third-party payer systems, such as health insurance, cover a portion or all of the cost of healthcare services, thus reducing the cost to individual patients, which in turn increases the quantity of healthcare demanded. Patients are less sensitive to the price of healthcare services they consume because they are only paying a portion of the actual cost. As a result, they may demand more healthcare services than they would if they were paying the full cost out of pocket.

Third-Party Payer Systems Are Most Likely to ________ the Quantity