Question

What is one cited reason why healthcare expenditures are so high in the United States?

a. Medicare and Medicaid reduce the supply of medical care.
b. Doctors know patients are likely covered by insurance, which reduces the demand for medical care.
c. Government-sponsored forms of health insurance increase the demand for medical care by the elderly and the poor.
d. Insurance companies attempt to control medical care costs by capping expenditures.
e. Patients covered by insurance consume too little health care.

Answer 1

Answer: c. Government-sponsored forms of health insurance increase the demand for medical care by the elderly and the poor.

Step-by-step explanation:

One main reason why healthcare expenditures are so high in the United States is because government-sponsored forms of health insurance increase the demand for medical care by the elderly and the poor.

Since the government actually plays a vital role in the sponsoring of health insurance which has been on the increase recently, this has led to the rise in medical care demand by the poor and the aged because they are aware that the government will sort it out.