What impact do private insurance companies and Medicare have on national medical costs?

Question

Quizplus · Accepted Answer

Private insurance companies and Medicare both lead to an increase in the quantity demanded of medical services, which drives up the overall cost of healthcare. This is due to the fact that patients with insurance are more likely to seek out medical services, knowing that their insurance will cover the majority of the cost. This causes healthcare providers to increase their prices, knowing that insurance companies will cover the costs. However, it should be noted that while this does contribute to rising medical costs, it is not the only factor at play.

What Impact Do Private Insurance Companies and Medicare Have on National