Question

Which of the following factors have contributed to the increasing costs of healthcare? A. Government controls B. New drugs and medical technologies C. Stagnant competition in the healthcare marketplace D. Capitations on physician reimbursement by insurance companies

Answer 1

The correct answer is option C

Stagnant competition in the healthcare segment has given rise to powerful entities which have monopolies in certain areas and segments. They dictate the cost of Health Care and exploit the needy.

The other options in fact reduce the cost of Health Care. Government regulations keep the cost of Health Care in control. New technology and medicines also reduce the cost of treatments. Capitation on Physician reimbursement reduces the cost since the reimbursements are now limited.