Final answer:
The focus of reduced healthcare costs is on healthcare incentives of providers rather than consumers.
Step-by-step explanation:
The focus of reduced healthcare costs is on healthcare incentives of providers rather than consumers.
Traditionally, most health care in the United States has been provided on a fee-for-service basis, where medical care providers are paid more if they provide additional services. However, the structure of healthcare provision has shifted towards health maintenance organizations (HMOs), which receive a fixed amount per person enrolled in the plan – regardless of the number of services provided. This shift incentivizes healthcare providers to reduce the moral hazard problem by limiting the quantity of care provided, as long as it does not lead to worse health problems and higher costs later.
Overall, focusing on healthcare provider incentives aims to reduce costs by aligning their financial interests to provide necessary care while minimizing unnecessary services.