Final answer:
Supplier-induced demand affects physician supply and payment policies, with fee-for-service models incentivizing more service provision, while HMOs encourage efficiency. Both Medicare and Medicaid, as well as the ACA, are influenced by these policies.
Step-by-step explanation:
The subject concerns two policies affected by supplier-induced demand in health care: Physician supply policies and Physician payment policies. In a fee-for-service system, medical care providers receive reimbursement based on the services provided which can lead to an increase in services offered, not necessarily aligned with patient need. With physician supply policies, the number of available providers can influence the demand for services as provider-induced demand is more likely in markets with more physicians competing for patients.
In contrast, health maintenance organizations (HMOs) compensate providers based on the number of patients, creating an incentive to allocate resources efficiently. However, this shift in payment method also leads to potential under-provision of care, due to set reimbursements. Both Medicare and Medicaid are significantly impacted by these policies, as pay structures influence how care is delivered to their beneficiaries. The Patient Protection and Affordable Care Act (ACA or Obamacare) introduced changes that affected both payment models in efforts to control provider-induced demand and improve healthcare efficiency.