A Medicaid experiment in California showed that a nominal fee of $1 charged for doctors' visits
A)caused beneficiaries to stop going to doctors altogether
B)significantly reduced benefits to those covered by Medicaid without reducing the cost of the program to taxpayers
C)reduced the cost of the program to taxpayers without creating a substantial burden for recipients
D)increased the number of doctors' visits per month by beneficiaries
E)drastically reduced consumer surplus in that market

Question

Quizplus · Accepted Answer

The experiment showed that charging a nominal fee of $1 for doctors' visits reduced the cost of the program to taxpayers without creating a substantial burden for recipients. It did not cause beneficiaries to stop going to doctors altogether, significantly reduce benefits, increase the number of doctors' visits, or drastically reduce consumer surplus in that market.

A Medicaid Experiment in California Showed That a Nominal Fee