Which of the Following Best Explains Why Hospital Charges of $25

question 169

Multiple Choice

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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