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Which Is an Unintended Consequence of Government Caps on Medicare

Question 125

Multiple Choice

Which is an unintended consequence of government caps on Medicare and Medicaid reimbursements?


A) Patients in these programs pay significantly more out-of-pocket than do insurance enrollees.
B) It forces physicians and medical centers to raise prices for other procedures that are not covered by these programs.
C) The price ceiling on medical procedures spills over to patients who are not program participants,enabling them to unconsciously reap the benefits of government price controls.
D) The supply of health care increases,lowering prices for most consumers in the market.
E) Since healthcare demand is very inelastic,the government price ceiling becomes nonbinding.

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