Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Points: 0 of 1 Free Riders Must be Part of Health Debate President Obama insists that the reason people don't have health insurance isn't because
Points: 0 of 1 "Free Riders" Must be Part of Health Debate President Obama insists that "the reason people don't have health insurance isn't because they don't want it, it's because they can't afford it." There are 47 million uninsured people in the United States. Of these, 16 percent earn more than $75,000 a year and 15 percent earn between $50,000 and $75,000 a year. About 16 percent of those who received "free" medical care in 2004 had incomes at least four times the federal poverty level. Source: Los Angeles Times, March 4, 2008 Explain why government-subsidized healthcare services can create a free-rider problem. Government-subsidized healthcare services can create a free-rider problem in the healthcare market because O A. the supply of healthcare would increase O B. people would cancel private insurance policies and use government-subsidized coverage when they are sick O C. when hospitals receive payment from a government-subsidized program, the hospital is less efficient O'D. when hospitals receive payment from a government-subsidized program, the hospital has less incentive to carry out medical research
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started