Chapter 21: The Economics of Health Care

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5 Terms

1

Mortality rates are higher for those

without insurance, and people without insurance who have chronic health conditions are less likely to see a doctor, go to the hospital, and fill prescriptions than their counterparts with health insurance.

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2

third party payment

A(n) ________ occurs when the provider or seller of a good or service is paid by someone other than the buyer of the good.

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3

Physical induced demand occurs when

doctors prescribe more treatment than is necessary in order to increase their own incomes.

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4

Moral hazard occurs when

someone changes their behavior because they are insured against risks associated with that behavior.

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5
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