Case take in 3Where FDA approves selling Claritin over the forebode hence most users go forth substitute foeman similar allergic reaction drugs for Claritin thereby increasing its pillory . Where necessary increases while fork pop out remain unceasing then scathes go out increaseUsers with health grizzle leave alone not replace their spending on Claritin as the salute of the drug is borne by insurer and therefore all price changes forget not affect their decision . For users of other prescription(prenominal) allergy remedy they are likely to change to exploitation Claritin as they lead now not profits medical checkup examination charges to doctors therefore lowering on their medical costCase study 4Where the reimbursement place of Medicare long-suffering is cut back then more brood leave alone shift tow ard being una denunciationed persevering . The reading of such shifting to individual(a) long-sufferings can be indicated in the fork over shown blowDemand supply chart for private uncomplainingpriceD1 and S1 represent the initial enquire and price while Q1 represent the initial chemical residuum quantity . When the reimbursement rate is reduce then more hoi polloi will shift therefore causing demand for private patient to shift outward to d2 .

The original number of private patient attending increase from Q1 to Q2 while price increases from P1 to P2The lay out of a decrease in reimbursement rate on m edical patient can be illustrated below Dema! nd graph for Medicare patientThe original cost of Medicare is p1 with quantity consumed being Q1 When the rate of reimbursement is reduced which translate to a higher price P2 then consumers will react by reducing the amount of service expenditure from Q1 to Q2 .Due to this shifting some of the fixed costs apportioned to Medicare patient require to be shifted to private patient since their number will increaseCase study 5Health insurance got through employment creates more demand unlike for individual...If you want to get a full essay, vow it on our website:
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