Under the current structure of Medicare, economic theory indicates that the move
ID: 1187878 • Letter: U
Question
Under the current structure of Medicare, economic theory indicates that the movement of the baby boom
generation into the retirement phase of life during the years following 2010 will
a. reduce the share of health-care services paid for by a third party.
b. push both health-care prices and expenditures upward.
c. increase the incentive of suppliers to provide health-care services at a low cost.
d. increase the incentive of consumers to economize on their use of health care.
PLEASE EXPLAIN IT. THANKS
Explanation / Answer
Ans
b) push both health-care prices and expenditures upward
Explanation::
Of 17 high-income countries studied by the National Institutes of Health in 2010, the United States was at or near the bottom in infant mortality, heart and lung disease, sexually transmitted infections, adolescent pregnancies, injuries, homicides, and rates of disability. Together, such issues place the U.S. at the bottom of the list for life expectancy. On average, a U.S. male can be expected to live almost four fewer years than those in the top-ranked country.
The U.S. Census Bureau reported that 49.9 million residents, 16.3% of the population, were uninsured in 2010 (up from 49.0 million residents, 16.1% of the population, in 2009. A 2004 Institute of Medicine report said "The United States is among the few industrialized nations in the world that does not guarantee access to health care for its population." A 2004 OECD report said: "With the exception of Mexico, Turkey, and the United States, all OECD countries had achieved universal or near-universal (at least 98.4% insured) coverage of their populations by 1990."
A 2010 report observed that lack of health insurance causes roughly 48,000 unnecessary deaths every year in the United States.[2] In 2007, 62.1% of filers for bankruptcies claimed high medical expenses. A 2011 study found that about 25% of all senior citizens declare bankruptcy due to medical expenses, and 43% are forced to mortgage or sell their primary residence
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