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Question
What would happen if, as a business owner, Toderick forced his employees to join an HMO?
a. Medical care costs would likely be higher than if Todericks employees could see any doctor and receive any test they wanted because unnecessary care would be fully covered.
b. Medical care costs would likely be lower than if Todericks employees could see any doctor and receive any test they wanted because the amount of unnecessary care would be reduced.
c. Medical care costs would likely be unaffected by whether employees join an HMO or not.
d. Medical care costs would likely be lower because the less healthy would be encouraged to receive care.
e. Medical care costs would likely be lower because the healthy would be discouraged from receiving care.
Answer
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Related questions
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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a. Demand for jelly will increase along with the price.
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