ECON545 Week-4 Discussion 2

Market imperfections in the healthcare sector create incentives for customers who have certain carriers levels of coverage. For example, Doctors need to make a certain minimum per visit to pay staff and other fixed costs. Customer is unable to pay the high amount. Doctor negotiates to accept a lower price with customer's insurance company. Insurance company contacts customer about the new price and a deal is made. This is how the health insurance market works. the issue is that some insurance companies try to low ball doctors or medical expenses, doctors usually reject payment and thus decline an insurance company customers. It is not a perfect thought to need a life saving surgery by a doctor who specializes in what you need however will not see you because of the insurance a customer has chosen

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