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2a. Using economic theory, justify the need for the Medicaid and Medicare programs. 2b. Discuss the methods states use to contain Medicaid costs. 3a. What

2a. Using economic theory, justify the need for the Medicaid and Medicare programs.

2b. Discuss the methods states use to contain Medicaid costs.

3a. What does cherry-picking behavior mean?

3b. What does the evidence suggest about this type of behavior?

3c. Why is it less troublesome in the group health insurance market?

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