36. A few years ago, there was a significant debate as to the effectiveness of providing an outpatient prescription drug benefit to the Medicare population. While better access to outpatien= prescription drugs for the elderly could produce a cost savings to the Medicare program due to reduced hospital length of stays (LOS), and outpatient and emergency room visits, some argue that by providing such a benefit, we will witness "a moral hazard effect." This implies: a. Medicare patients will use less prescription drugs when their out-of-pocket expenses are lower. Ob. Medicare patients will use more prescription drugs when they are partially or fully insured.

36. A few years ago, there was a significant debate as to the effectiveness of providing an outpatient prescription drug benefit to the Medicare population. While better access to outpatien= prescription drugs for the elderly could produce a cost savings to the Medicare program due to reduced hospital length of stays (LOS), and outpatient and emergency room visits, some argue that by providing such a benefit, we will witness "a moral hazard effect." This implies: a. Medicare patients will use less prescription drugs when their out-of-pocket expenses are lower. Ob. Medicare patients will use more prescription drugs when they are partially or fully insured.

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter12: Medicare

Section: Chapter Questions

Problem 4QAP

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