Ralph will consume any health care service just as long as its MB exceeds the money he must pay out of pocket. His insurance policy has a zero deductible and a 10 percent copay, so Ralph only has to pay 10 percent of the price charged for any medical procedure. Which of the following procedures will Ralph choose to consume? a. An $800 eye exam that has an MB of $100 to Ralph. b. A $90 hearing test that has an MB of $5 to Ralph. c. A $35,000 knee surgery that has an MB of $3,000 to Ralph. d. A $10,000 baldness treatment that has an MB of $16,000 to Ralph.

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter7: The Market For Health Insurance
Section: Chapter Questions
Problem 11QAP
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Ralph will consume any health care service just as long as its MB exceeds the money he must pay out of pocket. His insurance policy has a zero deductible and a 10 percent copay, so Ralph only has to pay 10 percent of the price charged for any medical procedure. Which of the following procedures will Ralph choose to consume?

a. An $800 eye exam that has an MB of $100 to Ralph.

b. A $90 hearing test that has an MB of $5 to Ralph.

c. A $35,000 knee surgery that has an MB of $3,000 to Ralph.

d. A $10,000 baldness treatment that has an MB of $16,000 to Ralph.

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