Final answer:
Crowd out with Medicare refers to the replacement of private insurance by Medicare, specifically when individuals eligible for Medicare do not purchase private insurance and rely solely on Medicare.
Step-by-step explanation:
The term 'crowd out' with Medicare typically refers to a situation where Medicare serves as a substitute for what would otherwise be private health insurance coverage. Specifically, it indicates when those who use Medicare as their sole health insurance coverage would have otherwise purchased private health insurance.
This can occur when the introduction of a public insurance program like Medicare leads to a reduction in the purchase of private insurance.
In the context of the provided options, 'crowd out' corresponds to the scenario where individuals eligible for Medicare choose not to purchase private health insurance because they can rely on the Medicare program. Therefore, the correct answer is (d) those who use Medicare as their sole health insurance would have otherwise purchased private health insurance.
Crowd out with Medicare occurs when those who use Medicare as their sole health insurance would have otherwise purchased private health insurance. This means that individuals who are eligible for Medicare choose to rely on Medicare coverage and decline private insurance options, which would be their alternative.