Direct government funding of healthcare expenditures was more than $1.4 trillion in 2012. Including the subsidy for preferential tax treatment, this represents more than half of all health care spending in the U.S. In recent years, this funding has been increasing. This increased spending comes at a very low, almost negligible, opportunity cost in terms of spending on public health care programs and medical research & development, as these entries in the government budget have their own separate funding.

Question

Quizplus · Accepted Answer

The first statement is true. The second statement is false. Crowding out of R&D and public health programs can be seen in Table 14.2 and are noted in the text.

Direct Government Funding of Healthcare Expenditures Was More Than $1