Indicate the best answer to the question among the options provided

In the U.S. people who are 65 or older ("senior citizens") are eligible for Medicare, which is a health insurance program funded by the U.S. government. Several years ago, Medicare began to cover prescription drugs under a program called "Medicare Part D." Under Part D, private insurance companies can sell insurance plans that will pay for the prescription drug expenses of senior citizens.

Consider the competition among private insurance companies that offer Medicare Part D insurance plans to senior citizens in the U.S. Which of the following would be expected to DECREASE the aggressiveness of price rivalry in the Medicare Part D insurance market?

a) Under the law, insurers have little flexibility in terms of what drugs are covered by their insurance plans.

b) Each of the insurers is required to provide information on their plans to Medicare in a standardized format; Medicare publishes this standardized information online and in publications mailed to every Medicare-eligible citizen.

c) Over the last two decades, there has been significant entry by new insurers into the prescription drug insurance industry.

d) Some insurers have obtained exclusive endorsements from third parties such as the American Association of Retired Persons (AARP, the largest advocacy group in the U.S. representing senior citizens) and Prevention magazine (a well-known magazine focusing on health issues relevant to seniors).

Consider your answer to question 3 above. Do you believe that the source of the reduction in price rivalry that you identified should increase the profits of the Part D insurer? If so, why? If not, why not?