Final answer:
It is generally true that a pharmacy or pharmacist may refuse to provide service if reimbursement is less than the acquisition cost of a drug. They need to avoid financial losses in scenarios where fee-for-service reimbursement does not cover the costs or HMOs require careful allocation of resources. Stringent FDA regulations ensure the safety and efficacy of drugs, protecting consumers but also delaying treatment availability.
Step-by-step explanation:
True or False: a pharmacy or pharmacist may refuse to provide service if reimbursement is less than acquisition cost of a drug, service, etc. This statement is generally true. Pharmacies and pharmacists may face situations where the reimbursement for a prescription drug is less than the acquisition cost of that drug. This scenario can compel them to refuse to provide the service because to do so would result in a financial loss.
In a fee-for-service health financing system, reimbursement matches the cost of services provided. Conversely, through health maintenance organizations (HMOs), providers are reimbursed per capita, requiring resource allocation between patients requiring varying levels of care. The concept of adverse selection in insurance markets describes instances where the knowledge gap between insurance companies and buyers results in high-risk individuals gravitating towards what they view as favorable insurance deals, while low-risk individuals avoid the insurance due to perceived high costs.
Under the regulation of the Food and Drug Administration (FDA), pharmaceutical companies must undergo extensive testing to ensure the safety and efficacy of their drugs. The winners in this system are the consumers who are protected from unsafe drugs. However, the losers are those who may suffer due to the delayed availability of new treatments that occur as a result of stringent regulatory requirements.