Question

Tax-exempt employer-purchased health insurance:

		decreases the patient's incentive to be concerned about the cost and use of services.
		is being eliminated by the Affordable Care Act.
		provides physicians an incentive to be more concerned about their patients' use of services.
		is also available to those who are self-employed.

Answer 1

Decreasea the patient's incentive to be considered about the cost and use of services.

(Employer purchased health insurance on behalf of their employees isn't considered to be a part of employee's taxable income. Beneficiaries of the coverage are those mainly in the middle and highest income brackets. The more comprehensive coverage lessens the patient's ( employee's) incentive to be concerned with the price of those services. Further, too many services are used in less than the cost of those services.

Other options are incorrect.

* Eventhough there are arguments for the elimination of tax-exempt employer-purchased health insurance, it isn't being eliminated by the affordable care act.

* It doesn't effect the physician's incentive to more concerned about the use of services. Infact, physicians don't give much significance to it at all.

* Self employed individuals are excluded from the coverage.)