Which Is an Unintended Consequence of Government Caps on Medicare

question 103

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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Definitions:

Eutherian Mammal

A type of mammal characterized by complex placental development, giving birth to live young at a relatively developed stage.

Primates

An order of mammals including humans, apes, monkeys, and prosimians, characterized by high intelligence and dexterous hands.

Convergent Evolution

The process by which organisms not closely related independently evolve similar traits as a result of having to adapt to similar environments or ecological niches.

Placental

Pertaining to the placenta, an organ that develops in the uterus during pregnancy that provides oxygen and nutrients to and removes waste materials from the developing fetus.