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| Topic: |
Science
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| Number of pages / Number of words: |
5 / 1137 |
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Third, competition could serve to rationalize the adoption of new technology.108 As an added attraction, financial barriers to services could be largely eliminated because cost sharing would no longer be necessary to control use" (White, 2004)
Effectiveness, Strengths and Weaknesses:
Giving insurance companies more responsibility introduced new problems: incentives to under provide care, avoidance of high risk patients, coordination problems, and the risk of inflexibility in the provision of services (White, 2004)...
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"Advocates responded that these problems could be solved by imposing accountability on plans through competition. To facilitate their choices, consumers would be provided with appropriate price and quality information to enable them to assess cost and quality tradeoffs between plans. The net result would be not only to create incentives for consumers to seek value for money in selecting their insurance, but to provide a way for consumers, through their shopping decisions, to directly impose market discipline on plans" (White, 2004)...
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