What is the cost transfer?
cost shifting is economic practice that allows you to meet the costs for the cost by shifting some responsibilities to another group of payers. There are many industries and businesses that are involved in the cost shift, although the health care system is perhaps the most common example. Some see the cost shift as needed to prevent the loss of work or reduce services due to unpaid costs. Critics often characterize this as a means of increasing healthy profits by forcing some segments of the population to overpay. To this end, a government medical agency, such as Medicare, will reduce the financial burden of low -income citizens by determining prices that can be charged to Medicare patients, which are often significantly below the services. In order to replace this deficit, hospitals and doctors may decide to have patients with private insurance, or those who pay themselves more for services. Costs are actually moved to higher income parts of the population to allowNily to those who have access to medical care, access to poverty. However, even this basic explanation is only one way to look at the cost shift; Depending on the view, this practice may be an essential part of social services or robbery on the highway, which capitalized by hospitals and insurance companies to increase profits.
cost transfer can also be used for how the service is paid. Employers who offer employees' benefits often share the percentage of the insurance plan with their workers. However, if money is tight, employers can move more financial liability to employees due to recession or poor business. In many cases, this is not the result of grasping additional profits, but a way to allow society to maintain a plan. Moving costs in this way can ever allow everyone to remain insured or reduce sweatŘebu costs for expenses and dismissal by reducing costs.
The aerial industry is another place where the cost can be shifted. If the price of fuel increases significantly, airlines can respond by charging increased ticket prices, but they can also move costs by providing free and available for free services. Bag fee, food and drinks and Wi-Fi access can be forms of cost moving so that the same services can be available in spite of increased financial responsibility.