Economic Principles-Healthcare


The insurance system has benefits and drawbacks for patients, providers (physicians), and insurance companies. Identify at least one benefit and one drawback for each of these stakeholders. Explain how insurance benefits/hinders each stakeholder. How does the demand theory apply to the relationship between each stakeholder and the insurance industry? Does insurance impact the quality of care provided by physicians?

In responding to at least two of your classmates, do you think principles such as demand or competition should dictate pricing, or should insurance companies or government agencies set pricing for physicians?

Sample Solution