Physicians Often Issue Prescriptions and Referrals for Medical Services Rendered

Physicians often issue prescriptions and referrals for medical services rendered by other providers and, in most cases, they do not stand to benefit financially from those transactions. Suppose, an insurer introduces the following initiative: every time the physician does not prescribe an expensive MRI (magnetic resonance imaging) , which may cost anywhere between $700 to more than $2,000 per scan, to a patient complaining of a headache, the doctor is paid a $100 bonus by the insurer. Which of the following will not be true regarding the outcomes of this new policy?

A) Physicians will now have an incentive to prescribe MRI scans less often.
B) This policy is likely to increase physicians' income.
C) This policy is likely to decrease insurer's profits.
D) If widely adopted, this policy is likely to decrease overall spending on imaging services.
E) It is likely that patient outcomes will not be significantly affected, as the threat of being sued for malpractice provides powerful reasons not to withhold medically necessary procedures.

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