Why Has There Been a Shift Away from the Traditional

question 1

Multiple Choice

Why has there been a shift away from the traditional fee-for-service structure in the U.S. health care?

• A) to address the adverse selection problem associated with the medical profession
• B) prevents insurance companies from raising medical professional insurance premiums
• C) reduces moral hazard by limiting the quality of care provided.
• D) reduces incentives and moral hazards of added services to increase income

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Definitions:

Planning Budget

A financial plan that estimates the revenue and expenses for a specific period in the future, often used for setting financial goals.

Administrative Expenses

Overhead costs related to the general operation of a company, such as salaries of executive personnel, office supplies, and utilities.

Planning Budget

A budget designed for a specific level of activity, used for planning and control purposes.

Medical Supplies

Items and materials used in healthcare settings, including syringes, bandages, gloves, and medicines.