Which of the following is an advantage of a premium support system for Medicare enrollees?

Question

Quizplus · Accepted Answer

A premium support system would promote efficiency by introducing competition among insurers, which would encourage them to offer better services at a lower cost. This would benefit Medicare enrollees who could select the plan that best meets their needs. Adverse selection refers to the tendency of sicker individuals to enroll in plans with more generous benefits, which drives up costs. Moral hazard refers to the tendency of people to overuse healthcare services when they are not responsible for the full cost, which also drives up costs. Therefore, choices C and D are incorrect, and choice A is incorrect because premium support would not impose the government's preferences on individuals, but rather give them more choice and control over their healthcare options.

Which of the Following Is an Advantage of a Premium