The Growth of Third-Party Payments Has Resulted in Higher Prices

question 509

Multiple Choice

The growth of third-party payments has resulted in higher prices for health-care services because

• A) the lower out-of-pocket cost for consumers has increased the demand for health-care services.
• B) consumers have less of an incentive to economize and shop for low-cost services when they pay a lower share of their bill.
• C) producers have less of an incentive to provide health-care services at a low price when consumers are not as cost conscious.
• D) All of the above are true.

---

Definitions:

Transactional Analysis

A psychotherapeutic approach that examines interactions, or transactions, between individuals to understand and improve communication.

Scripts

Predefined, stereotypical sequences of actions and behaviors that people use in particular social contexts.

Gifted Writers

Individuals possessing exceptional talent in writing, enabling them to create works of high quality, originality, and creativity.

Language

A system of communication through the use of speech, symbols, or writing, used by a particular country or community.