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Chapter 30: Q.18 (page 691)

Take a look at both Figure 30-8 and Figure 30-9. When health care programs such as Medicare, Medicaid, and the Affordable Care Act's health exchange system were created, Congress based projected costs on quantities of health care consumed at the time the programs were implemented. Was this a reasonable assumption given that the programs all cut out-of-pocket payments for beneficiaries? Explain.

Short Answer

Expert verified

With more out-of-pocket payments, the amounts of administrations will decay over the course of the year.

Step by step solution

01

Given Information

With all the more outsider instalments, the amount of medical care benefits each year has expanded. The amount is straightforwardly connected with the cost of the administration.

02

Explanation

By and large with the inflationary pattern, the costs of the medical care benefits additionally will quite often increment. So with the expansion in value, the number of medical care administrations will in general fall. In the event that the instalment is done through outsiders, the inclusion increments suggest that individuals are consuming a greater amount of such administrations as they, at the end of the day, are not doing the instalment.

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