Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life during the years following 2011 will
A) reduce the overall demand for medical services because the elderly will not have to pay for hospitalization in the future.
B) place downward pressure on healthcare prices.
C) cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program.
D) do all of the above.

Question

Quizplus · Accepted Answer

As the baby boom generation enters retirement age, there will be an increase in demand for medical services, which will lead to increased Medicare expenditures. This will require higher taxes to finance the program, as Medicare is funded through a combination of taxes and premiums. Therefore, option C is the best choice. Options A and B are incorrect, as the demand for medical services will not decrease and there may be upward pressure on healthcare prices due to increased demand.

Under the Current Structure of Medicare, the Movement of the Baby