The current Medicare system is designed so that it actually encourages
A) cost reductions.
B) higher costs of medical services.
C) higher costs only for surgeries.
D) lower drug costs for recipients.

Question

Quizplus · Accepted Answer

The current Medicare system is designed in a way that encourages higher costs of medical services. Medicare pays a fee-for-service, which means that healthcare providers are paid based on the number of services they provide to a patient. This creates an incentive for healthcare providers to order more tests and procedures, leading to higher costs of medical services. Additionally, there are no limits on what healthcare providers can charge, which can also contribute to higher costs.

The Current Medicare System Is Designed So That It Actually