Question

Which of the following reimbursement and consumer copayment schemes would have the greatest and lowest likelihood of producing high-cost, low-benefit medicine? Explain why. (2+2) A. Fee-for-service plan with 40 percent consumer copayment. B. Fixed-payment plan with 40 percent consumer copayment. C. Fee-for-service plan with zero copayment. D. Fixed-payment plan with zero copayment.

Answer 1

GREATEST LIKELIHOOD OF PRODUCING HIGH-COST , LOW - BENEFIT MEDICINE - OPTION A

  BECAUSE FEE-FOR-SERVICE PLAN INCREASES THE COST OF HEALTH SERVICE CONSUMERS BY MAKING THEM PAY FEE EACH TIME THEY AVAIL SERVICES . TOGETHER WITH THIS 40% CO -PAYMENT ( THE AMOUNT THAT CONSUMERS NEED TO PAY EACH TIME THEY VISIT DOCTOR ) . HERE DOCTORS/HEALTH CARE PROVIDERS TRY TO ATTEND MAXIMUM NUMBER OF PATIENTS THUS REDUCE THE BENEFIT FOR CONSUMERS.

LOWEST LIKELIHOOD OF PRODUCING HIGH-COST , LOW - BENEFIT MEDICINE - OPTION D

BECAUSE FIXED PAYMENT ( CAPITALIZED PAYMENT PLAN ) IS A TYPE IN WHICH HEALTH CARE PROVIDER AGREES TO RECEIVE A FIXED PAYMENT WITH THE INSURANCE PROVIDER. IT DISCOURAGES EXCESSIVE OR COSTLIER PROCEDURE TOGETHER WITH NO PAYMENT RECEIVED BY HEALTH CARE PROVIDER FROM CONSUMERS MAKE THIS PLAN LEAST PREFERRED.