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Explain how one insurance contract can provide incentives to: a. Choose a more or less expensive...

Explain how one insurance contract can provide incentives to:

a. Choose a more or less expensive hospital.

b. Spend more or fewer days in the hospital.

c. Choose a more or less expensive surgeon.

d. Use more or fewer drugs.

e. Use more- or less-expensive drug

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Answer #1

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Part(e) Use more- or less-expensive drug.

One insurance can provide incentives too because in case of any disease we are able to Use more- or less-expensive drugs. As we can claim for drugs which we purchased for our disease as it is assured under Insurance policy.

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