_____ Pay Medical Service Providers a Fixed Amount Based on the Number

question 39

Multiple Choice

_____ pay medical service providers a fixed amount based on the number of people enrolled,regardless of services received.(Health Plan Design Alternatives)

• A)Indemnity plans
• B)Fee-for-service plans
• C)Self-funded plans
• D)Prepaid plans

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Definitions:

Risk-loving

Refers to individuals or entities that prefer or are willing to take more risks, often for the possibility of higher returns.

Marginal Utility

The additional satisfaction or benefit received from consuming one more unit of a product or service.

Asymmetric Information

One of the parties to a transaction has information relevant to the transaction that the other party does not have.

Adverse Selection

A situation in which asymmetric information results in high-quality goods or high-quality consumers being squeezed out of transactions because they cannot demonstrate the quality of the product they are offering for sale.