Different reimbursement and consumer copayment schemes influence the utilization of health care. In a health care system:
If the payment to health care providers is fixed (such as a global budget regardless of the number of patients served), what is the likelihood that there will be over-utilization of health care under this system? Does it matter whether the out-of-pocket costs to consumers are high or low?
If the payment to health care providers is variable (e.g. based on volume), what is the likelihood that there will be over-utilization of health care under this system? Does it matter whether the out-of-pocket costs to consumers are high or low? If so, explain why?
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