In 1977, a medication to fight heart disease cost $1,000 and had a mortality rate of 80% after 1 year. Surgery cost $25,000 and had a mortality rate of 60% after 1 year. In 2012, a medication to fight heart disease cost $150 and has a mortality rate of 30%. Surgery costs $10,000 and has a mortality rate of 10%. One should expect expenditures on heart disease treatments to escalate because
A) more individuals will choose surgery in 2012 than they would have in 1970.
B) people tradeoff reduced life expectancy for lower costs.
C) managed care insurers tradeoff reduced life expectancy for lower costs.
D) physicians tradeoff reduced life expectancy for lower costs.
E) Medicare will most likely pay for the medication only.
Correct Answer:
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