Given the Current Structure of Health-Care Finance, Which of the Following

question 59

Multiple Choice

Given the current structure of health-care finance, which of the following is most likely to occur when the baby boom generation begins to retire and the elderly population increases rapidly during the years following 2010?

• A) The demand for health-care services will decrease.
• B) The prices of health-care services will grow less rapidly than has been the case during the last three decades.
• C) The real (adjusted for inflation) expenditures on Medicare and the taxes to finance the program will tend to decline.
• D) The health-care inflation and spending growth of recent decades will continue or even accelerate.

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Definitions:

Pleistocene

An epoch of the Quaternary period characterized by several glacial advances, extending from about 2.58 million to 11,700 years ago.

Triassic

A geologic period and system which lasted from about 252 to 201 million years ago, marking the beginning of the Mesozoic Era.

Carboniferous

A geologic period and system that occurred around 359 to 299 million years ago, known for its vast swamp forests and the formation of significant coal deposits.

Ordovician

A geological period, approximately 485 to 444 million years ago, marked by significant diversification of life, especially in marine environments.