(Consider This) Which of the Following Best Explains Why Hospital

question 222

Multiple Choice

(Consider This) Which of the following best explains why hospital charges of $25 per aspirin are not unusual?

• A)Government payments for Medicare and Medicaid patients do not cover hospitals' fixed costs, so these costs must be distributed to other patients and their private insurance providers.
• B)Government exercises no cost control for Medicare and Medicaid, so hospitals get away with charging those patients $25 for an aspirin.
• C)Pharmaceutical companies have monopoly power over hospitals, allowing them to charge high prices for medications.
• D)Hospitals distribute a medically advanced form of aspirin that costs more to produce.

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Definitions:

Level of Stress

The degree or intensity of stress an individual is experiencing at any given time.

Income Quintiles

A statistical measure dividing a population into five equal groups according to their income level for comparative analysis.

Government Spending

Expenditures by the government sector on goods and services that it consumes to provide public services and for the benefit of the community.

Personal Income Tax

Tax levied on individuals or households based on their total income from all sources.