Critically think through each set of questions and provide your answers below.

1. How can a patient benefit if the premiums paid are more than the cost of the medical care received? How can an insurance company benefit if the medical care it provides costs more than the premiums paid in?

2. What are four main ways HMOs act to reduce the cost of care?

3. Which organization provides the largest amount of payment to physicians in the United States (FYI: it is a Government organization)? How does this organization choose to make these payments? Has the form of payment changed over time? Why?

4. How are the values determined in setting up a relative value scale?