Final answer:
The financing of health care can be done through fee-for-service or health maintenance organizations. Adverse selection is a concern in insurance markets. Healthcare systems need to balance quality, access, and cost.
Step-by-step explanation:
In the United States, there are different approaches to financing health care. One method is fee-for-service, where medical care providers are reimbursed based on the cost of services they provide. Another method is health maintenance organizations (HMOs), where providers receive reimbursement based on the number of patients they handle. In this case, providers need to allocate resources between patients who receive differing levels of care.
Adverse selection is a concern in insurance markets where insurance buyers have more information about the risks they face compared to the insurance company. This can lead to low-risk parties avoiding insurance due to cost, while high-risk parties embrace it as a good deal.
Overall, the challenge for any healthcare system is to strike a balance between quality, access, and cost. The US system provides high-quality care and innovation, but struggles with high costs and equal access, while other countries may have lower costs and more equal access but face challenges in rapid access to care and the latest medical advancements.