Discussion Question

If expenditures on medical services have been shown to be less cost-effective in reducing mortality rates than changes in lifestyle behavior, why does the United States spend a growing portion of its resources on medical care? Be sure to address the role of insurance and the federal government's primary objective in funding medical care thus far. Should the government limit all increases in medical spending? Why or why not? How may the concept of the health production function be used to achieve a greater reduction in mortality rates?