An increase in the number of people in the United States with health insurance would likely...

An increase in the number of people in the United States with health insurance would likely cause: A. the cost of health care services to increase as the incentive for health care providers to minimize costs becomes less important. B. the cost of health care services to decrease as the incentive for health care providers to minimize costs becomes less important. C. the cost of health care services to decrease as the incentive for health care providers to minimize costs becomes more important. D. the cost of health care services to increase as the incentive for health care providers to minimize costs becomes more important.

Solutions

Expert Solution

Soln. When the number of people in the United States with health insurance increases, it means people will not be careful and very much attentive in taking the health care services as they believe that risk of bad health cost would be compensated by health insurance.This leads to the decrease in the demand of health care services and hence the cost of health care services would decrease. This is because, people with health insurance will give less importance to health care providers to minimize costs.Hence, option B is correct option.

Rahul Sunny answered 1 year ago

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