Which of the following would encourage consumers to economize on health-care expenditures and producers to supply health-care services more efficiently?
A) an increase in out-of-pocket expenditures by health-care consumers
B) decreased reliance on personal Medical Savings Accounts and health-care expenditures from the accounts
C) decreased reliance on the purchase of catastrophic health insurance coverage and less reliance on insurance with first-dollar coverage and small co-payments
D) the establishment of a national health-care system that would provide coverage to all people

Question

Quizplus · Accepted Answer

When consumers are faced with higher out-of-pocket expenditures, they are more likely to be conscious of the cost of the healthcare services they receive and seek out more cost-effective options. This encourages consumers to economize on healthcare expenditures and puts pressure on producers to supply healthcare services more efficiently. Option B and Option D do not encourage consumer economizing, and Option C suggests relying less on insurance, which may discourage healthcare providers from offering services.

Which of the Following Would Encourage Consumers to Economize on Health-Care