Regulatory strategies for health insurance financing seek to control public expenditures for health care by.

Question

Options

• AImplementing tax-financed health insurance or limiting premiums
• BLimiting the annual use of services among patients
• CIncreasing competition among health insurance plans
• DOnly A and C

• A
  94% (17)
• D
  6% (1)

Explanation

Option A is correct because regulatory strategies specifically target the financing side of healthcare - governments use tax-funded insurance (e.g., Medicare, Medicaid) or cap premiums through regulation to directly constrain what public funds are spent on health coverage, controlling expenditures at the source.

Why the distractors fail:

• B is wrong because limiting patient service use is a utilization management strategy, not a regulatory financing strategy - it targets demand, not how insurance is funded or priced.
• C is wrong because increasing competition is a market-based approach, not a regulatory one; competition may or may not reduce public expenditures and is considered an economic rather than regulatory tool.
• D is wrong because C is a market strategy, not a regulatory financing strategy, so it doesn't belong in the correct answer.

Memory tip: Think "regulatory = rules about money flows" - regulators control how insurance is paid for (taxes) and how much it costs (premium caps), not how patients use services or how companies compete.

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