Moral Hazard
What are the different cost-containment approaches used by managed care firms? How does
managed care solve the problems of moral hazard and demand inducement?
………………………….Answer preview……………………….
Managed care firms employ different strategies to contain the cost of health care in the United States. Formularies and limited lists of approved pharmaceuticals are the most prevalent means of containing drug cost and are utilized by most managed care firms. With the formulary system, the managed care plan will not cover the cost of a drug which is not on the formulary list in case a physician prescribes it to an enrollee……………………
APA
263 words
