Indicate whether the statement is true or false, and justify your answer.Compared with doctors who are paid on a fee-for-service basis by health insurers, doctors who are paid on a capitated (per-patient) basis have incentives to provide too much care.

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter5: Supply, Demand, And Price: Applications
Section5.5: Application 5: Why Is Medical Care So Expensive?
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Indicate whether the statement is true or false, and justify your answer.
Compared with doctors who are paid on a fee-for-service basis by health insurers, doctors who are paid on a capitated (per-patient) basis have incentives to provide too much care.

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