Question

Identify 3 or more important factors that impact the demand for medical care for a typical individual? The RAND Health Insurance Study was set up to examine the effect of economic incentives on medical care demand. Identify 3 major findings of this study. What are the implications of this study in today's healthcare environment?

Answer 1

Soln. Three important factors that impact the demand for medical care for a typical individual are listed below -

1. Insurance policy being taken by the individual. Individual, who has insurance policy cover, is less attentive towards medical care.

2. Earning level of the individual also decides his or her interest in taking medical care.

3. Lack of medical in the region, where the individual lives, also impact individual's decision of opting for the medical care.people are lazy to go far and spend time for small small health issues.

Three major findings of RAND Health Insurance Study are listed below -

1. Health insurance with co-insurance results in services being used by more number of people

2. Cost sharing of medical care reduced the unnecessary medical care

3. Lack of medical treatment and services have direct impact on diseases such as blood pressure & visual acuity.

Today's health care environment are now more prone to medical care and even general and for normal medical problems also, people avail medical care. They are aware and benefit of medical insurance and avails the facility accordingly. People leverage the cost sharing for medical care to reduce the overall cost and gain the benefits from medical care.