Chapter 21: The Economics of Health Care

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.

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.

Physical induced demand occurs when

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

Moral hazard occurs when

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