OOOO a d+e d a+b+c Consider the figure below. Suppose the true price of a health care service is P1. Suppose further that the individual has obtained insurance that has a fixed copayment for this particular service. The copayment is represented by price P2. The social loss from moral hazard if the individual has copayment P2 is represented graphically by the area(s): Health Care Service P. a No 4 ८ e g Q2 Q3 D

Understanding Health Insurance: A Guide to Billing and Reimbursement
14th Edition
ISBN:9781337679480
Author:GREEN
Publisher:GREEN
Chapter5: Legal And Regulatory Issues
Section: Chapter Questions
Problem 19R
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Question
OOOO
a
d+e
d
a+b+c
Consider the figure below. Suppose the true price of a health care service is P1. Suppose further that the individual has obtained insurance that has a fixed copayment for this
particular service. The copayment is represented by price P2. The social loss from moral hazard if the individual has copayment P2 is represented graphically by the area(s):
Health Care Service
P.
a
No
4
८
e
g
Q2 Q3
D
Transcribed Image Text:OOOO a d+e d a+b+c Consider the figure below. Suppose the true price of a health care service is P1. Suppose further that the individual has obtained insurance that has a fixed copayment for this particular service. The copayment is represented by price P2. The social loss from moral hazard if the individual has copayment P2 is represented graphically by the area(s): Health Care Service P. a No 4 ८ e g Q2 Q3 D
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