Question

In: Economics

Some argue that controls on some payers lead to a shift in cost to other payers...

Some argue that controls on some payers lead to a shift in cost to other payers (and that a single-payer system is needed). What evidence would suggest cost-shifting to other third-party payers and What evidence suggests that not all the costs are shifted?

Solutions

Expert Solution

In a society there are two kinds of sections, rich and poor sections. Services and products developed in the market are also of two - more price and less price. Mostly rich people are affordable to equipy more priced goods and these have more benefits as compared less priced goods. Normally the other poor section use less priced goods. In the case of health system also there are several hospitals. The services in all hospitals are same. But the charges of service cost is different . Some hospital charges higher cash for the same service that done in another hospital in lesser charge. In this stage many popular countries like us, uk, Canada etc introduced single payer health care system. This system says all citizens of the country have to pay one cost decided by the govt. cost shifting says example in a health care system there people take health insurance and not. Insured person get extra privelage.but this system provides equality among people. But there some evidences still shows cost shifting is controversial. Hospital management needs to some adjustment to provide the equity service. Some payers used this privelage in Fradualent manner by exempting from the normal payment. These are the some of the issues faced in this system


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