question E

information that may be important Q = 100 - Pp

15. Fun with cost-sharing. An important distinction in health insurance is between the list price (Pl) and out-of-pocket price (Pp) of a medical good or service. The list price is the official price that the provider charges the insurance company, while the out-of-pocket price is the price that the insurance customer faces. Sometimes, the out-of-pocket price depends on the list price. space. Lavci uns curve 3. e Finally, assume the consumer is part of a partial insurance plan with a copayment provision. Her insurance pays all expenses above and beyond her copayment of $25 for each unit of Q. Consider again the relationship between P, and Pp and plot a copayment-plan demand curve in P,- space. Label this curve D. 16 More fun with cost-sharing. (You may want to review Exercise 15 before proceeding, Ithough it is not necessary.) A consumer's demand for a medical service is 15. Fun with cost-sharing. An important distinction in health insurance is between the list price (Pl) and out-of-pocket price (Pp) of a medical good or service. The list price is the official price that the provider charges the insurance company, while the out-of-pocket price is the price that the insurance customer faces. Sometimes, the out-of-pocket price depends on the list price. space. Lavci uns curve 3. e Finally, assume the consumer is part of a partial insurance plan with a copayment provision. Her insurance pays all expenses above and beyond her copayment of $25 for each unit of Q. Consider again the relationship between P, and Pp and plot a copayment-plan demand curve in P,- space. Label this curve D. 16 More fun with cost-sharing. (You may want to review Exercise 15 before proceeding, Ithough it is not necessary.) A consumer's demand for a medical service is