One source of high health care costs is the:
A) relatively large fraction of health care expenditures paid directly by patients.
B) relatively large fraction of health care expenditures paid by third-party payers.
C) deficiency in the availability of hospital beds.
D) deficiency in the availability of diagnostic tests.

Question

Quizplus · Accepted Answer

The relatively large fraction of health care expenditures paid by third-party payers, such as insurance companies, is a significant source of high health care costs. When patients do not directly bear the cost of medical services, they are more likely to seek care and providers are more likely to offer services, even if they may not be necessary. This kind of moral hazard can lead to overutilization of health care services, driving up costs.

One Source of High Health Care Costs Is The