Explain How the Price System Eliminates a Surplus

question 33

Essay

Explain how the price system eliminates a surplus.

---

Definitions:

Insured Disability

A condition where an individual is protected under an insurance policy that provides income in the case they are unable to work due to a disability.

Precertification

The process of obtaining authorization from a health insurance company before receiving medical services to ensure coverage.

Preauthorization (Predetermination)

The process where a healthcare provider must obtain approval from a health insurance company before providing specific services to ensure coverage.

Indemnity-Type Plan

A type of health insurance plan that allows policyholders to direct their own healthcare and visit almost any doctor or hospital they like.