As third-party payments and government expenditures on healthcare increased following the passage of Medicare and Medicaid,
A) total expenditures on healthcare declined.
B) the incentive of consumers to economize on their use of healthcare services increased.
C) the incentive of suppliers to provide healthcare services at a low cost increased.
D) both the prices of healthcare services and total expenditures on those services increased rapidly.

Question

Quizplus · Accepted Answer

The introduction of Medicare and Medicaid increased demand for healthcare services, leading to higher prices and total expenditures as consumers had less incentive to economize and suppliers had less incentive to keep costs low.

As Third-Party Payments and Government Expenditures on Healthcare Increased Following