Question

In most ________ programs, patients choose a primary care physician from a list of participating doctors.

Option 1: Insurance reimbursement
Option 2: Managed care
Option 3: Healthcare subsidies
Option 4: Public health initiatives

Answer 1

In managed care programs, patients select a primary care physician from a list, and providers are reimbursed based on patient numbers, which can mitigate adverse selection in insurance markets.

Step-by-step explanation:

In most managed care programs, patients choose a primary care physician from a list of participating doctors. Managed care is a health care delivery system organized to manage cost, utilization, and quality. Programs such as Health Maintenance Organizations (HMOs) operate under this model, where medical care providers are reimbursed based on the number of patients they see, rather than on a fee-for-service basis. This approach can help reduce instances of adverse selection in insurance markets, which occurs when there is asymmetry in the risk knowledge between insurance buyers and the insurance company, potentially leading to disproportionately high or low-risk individuals influencing insurance costs.