If patients were allowed to sue their HMO,we would expect
A)the demand curve for health care services provided by the HMO to shift to the left and the price of HMO-provided health care coverage to fall.
B)the supply curve for health care services provided by the HMO to shift to the left and the price of HMO-provided health care coverage to rise.
C)the supply curve for health care services provided by the HMO to shift to the right and the price of HMO-provided health care coverage to fall.
D)a and b
E)none of the above

Question

Quizplus · Accepted Answer

If patients were allowed to sue their HMO, it would increase the potential liability of HMOs and could lead to a higher cost of providing health care services. As a result, the HMOs may reduce the quantity of health care services provided, causing a shift in the supply curve to the left and an increase in the price of HMO-provided health care coverage.

If Patients Were Allowed to Sue Their HMO,we Would Expect