Medicare: Case Study Questions And Answers
1. Why is it unrealistic for government projections to assume that the quantity of health care services demanded will not increase when Medicare subsidies push down the out-of-pocket prices of people eligible for the program?
Yes, is it unrealistic that the quantity of health care services demanded will not increase when Medicare subsidies push down the out of pocket prices because Medicare is growing faster than the total employer and employee contribution that in the future it will not be enough taxes to be collected to pay for the system. This far outstrip will cause more people to depend on health care because the government would not have the money to subsidize people. Another reason why the quantity demand of health care will increase, would be because Medicare will not have the funds to cover patient's prescription drug or new illness. Lastly, the quantity of health care services demanded will increase because physician's incomes and medical school applications have grown rapidly, for-profit hospitals. …show more content…
2.
Why do you suppose that most observers anticipate that Medicare will be insolvent—meaning that current and future tax revenues will be insufficient to fund expenses—by no later than 2026?
Yes, I suppose that the future tax revenues will be insufficient to fund medicare expenses because in the future the cost of medicare will exceed $25 trillion. Even more, the federal government is already paying the low-income citizens for Medicaid expenses that exceed more than $400 billion per year. This shows that if the federal government keeps subsidizing the health care of people than they would not be able to provide extra funds to subsidize the next generation. Overall, 2026 can be the year that the federal government stop subsidizing people for medicare or Medicaid because of the higher cost of new medical test, procedures, hospital, and
physicians.
Yes, is it unrealistic that the quantity of health care services demanded will not increase when Medicare subsidies push down the out of pocket prices because Medicare is growing faster than the total employer and employee contribution that in the future it will not be enough taxes to be collected to pay for the system. This far outstrip will cause more people to depend on health care because the government would not have the money to subsidize people. Another reason why the quantity demand of health care will increase, would be because Medicare will not have the funds to cover patient's prescription drug or new illness. Lastly, the quantity of health care services demanded will increase because physician's incomes and medical school applications have grown rapidly, for-profit hospitals. …show more content…
2.
Why do you suppose that most observers anticipate that Medicare will be insolvent—meaning that current and future tax revenues will be insufficient to fund expenses—by no later than 2026?
Yes, I suppose that the future tax revenues will be insufficient to fund medicare expenses because in the future the cost of medicare will exceed $25 trillion. Even more, the federal government is already paying the low-income citizens for Medicaid expenses that exceed more than $400 billion per year. This shows that if the federal government keeps subsidizing the health care of people than they would not be able to provide extra funds to subsidize the next generation. Overall, 2026 can be the year that the federal government stop subsidizing people for medicare or Medicaid because of the higher cost of new medical test, procedures, hospital, and
physicians.