Critics argue that ______________is the main reason for medical inflation because it gives doctors and hospitals an incentive to provide increased medical services.

Question

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Third-party fee-for-service is a system in which healthcare providers are paid for each service they perform, which incentivizes them to perform more services than necessary. This can lead to unnecessary medical procedures and higher costs for patients and insurance companies, contributing to medical inflation. Health maintenance organizations (A) and managed care (B) can actually help control medical costs by emphasizing preventative care and coordinating healthcare services, rather than paying for every individual service. Medicare (D) is a government-run healthcare program for older adults and those with certain disabilities, but it is not directly tied to medical inflation.

Critics Argue That ______________Is the Main Reason for Medical Inflation