By Promoting Third-Party Payment of Health-Care Expenses and the Purchase

question 302

Multiple Choice

By promoting third-party payment of health-care expenses and the purchase of health insurance through employers, health-care policy has

• A) eroded the incentive of health-care consumers and providers to economize.
• B) undermined the smooth operation of health-care markets.
• C) made it more costly for persons without a job to obtain health insurance.
• D) done all of the above.

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Definitions:

Factoring

A financial transaction where a business sells its accounts receivable to a third party (the factor) at a discount, in order to receive immediate cash.

With Recourse

A term indicating that if the primary party defaults on an obligation, the lender or third party has the right to seek repayment from the signer of the instrument.

Factoring Without Recourse

A financial transaction where a business sells its invoices to a third party without the obligation of repurchase if the invoices go unpaid.

Bad Receivables

Amounts owed to a company that are unlikely to be paid by the debtor, often due to financial difficulty.