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What evidence do those who believe in cost shifting cite to support their view?

ID: 1118018 • Letter: W

Question

What evidence do those who believe in cost shifting cite to support their view?

A. The lower rate of increase in employee wages when health insurance premiums increase

B. The positive relationship between increases in hospital and physician prices and the resultant increases in health insurance premiums

C. The positive relationship between rising hospital costs and higher hospital prices

D. The payment-to-cost ratios (higher price markups) by private payers increase when Medicare and Medicaid payers’ price markups decrease  

Explanation / Answer

Solution: The positive relationship between increases in hospital and physician prices and the resultant increases in health insurance premiums

Explanation: Evidence reveals that physicians decrease (increase) their price to private patient's when physician's fees for medical patient's are decreased (increased)

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