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Application: Health Care Insurance and DemandInsurance plays a pivotal role in health care financing and is therefore a major factor in how the health care industry operates.From the consumer’s perspective, insurance can be a beneficial way to mitigate the risks associated with illness or injury. Access to health care insurance and the characteristics of particular insurance plans often influence decisions regarding health care goods and services.This Application provides an opportunity to examine how the existence of third-party financing structures in health care complicates the concept of demand.To prepare for this Application:Review the insurance-related information presented in the Learning Resources.Consider the following:Why do individuals demand health care insurance? What factors might influence decisions to purchase (or not purchase) health care insurance?How is the demand for insurance related to the demand for medical care?Bring to mind a couple of scenarios involving various types of health insurance (i.e., HMOs, fee-for-service plans). How would you expect insuranceâincluding the particular type of insurance planâto influence the demand for health services? How might it affect the quantity demanded of those services?Write a 2- to 3-page paper in which you address the following:What is the distinction between demand for insurance and demand for medical care?How does the presence of insurance affect the demand for health services, as well as the quantity demanded of those services? Provide at least one concrete example to support your response.Your written assignment must follow APA guidelines. Be sure to support your work with specific citations from this week’s Learning Resources and additional scholarly sources as appropriate. Refer to thePocket Guide to APA Styleto ensure your in-text citations and reference list are correct.Submit your assignment by Day 7.
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