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Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364

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BuyFindarrow_forward

Principles of Economics 2e

2nd Edition
Steven A. Greenlaw; David Shapiro
ISBN: 9781947172364
Textbook Problem

What is the key difference between a fee-for-service healthcare system and a system based on health maintenance organizations?

To determine

The differences among fee-for-service healthcare and a system based on health maintenance organizations are to be determined.

Explanation

Moral hazards are a big issue for insurance company. Fee-for service health care system and health maintenanceorganization system are the ways to reduce the moral hazard problem.

Under Fee for service health care system, medical service providers are paid for services they provide or allowed to provide in that policy, and paid more for any extra services provided by them...

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