The Growth of Third-Party Payments Has Resulted in Higher Prices

Multiple Choice

The growth of third-party payments has resulted in higher prices for health-care services because

A) the lower out-of-pocket cost for consumers has increased the demand for health-care services.
B) consumers have less of an incentive to economize and shop for low-cost services when they pay a lower share of their bill.
C) producers have less of an incentive to provide health-care services at a low price when consumers are not as cost conscious.
D) All of the above are true.