Final answer:
Down coding results in lower payments to physicians, which can be part of the challenges faced by underinsured individuals. While this may influence the economic aspect of healthcare, studies suggest it does not significantly affect health outcomes.
Step-by-step explanation:
Down coding typically makes the payment to the physician lower because it involves coding a procedure or visit at a lower level than the service actually provided. This can lead to reimbursement at a rate that does not reflect the full complexity or time spent on a patient's care.
In the context of insurance, the term underinsured refers to individuals paying a significant portion of their income on medical care that is not covered by their insurance. Down coding, therefore, might contribute to the financial burden on patients by reducing the payments that healthcare providers receive, potentially influencing the accessibility and quality of care.
Debates on healthcare costs often highlight the issue of moral hazard, where having insurance could lead to over-consumption of medical services. However, research suggests that even when patients pay more out of pocket and consume less care, their health status remains unaffected. This implies that down coding, by lowering payments to physicians, doesn't necessarily correlate with a decrease in health outcomes but does impact the economic aspect of medical services.