Question

1. Why has the American Medical Association (AMA) favored subsidies to those with low incomes (Medicaid) but opposed Medicare, which provided subsidized healthcare to all the aged?

a. The largest increase in demand would come from extending insurance to those unable to pay. Those with higher incomes presumably have private insurance coverage or can afford to pay physicians. Extending government subsidies to those currently able to pay would greatly increase the government's cost, which would result in the government developing a concentrated interest in regulating physician fees.

b. The AMA was concerned that the aged already had comprehensive private health insurance, so subsidizing the aged would merely raise everyone's taxes.

c. The AMA opposed subsidizing the aged because the unions favored it and the AMA opposed the unions' political agenda, which was to establish a single-payer system for the United States.

d. The AMA believed it could use subsidized healthcare for all the aged as a bargaining ploy to have the government also subsidize physicians' malpractice insurance.

2. Which health associations would be more likely to oppose having Medicare reimburse nurse anesthetists?

a		An association representing rural hospitals
b		An association representing health insurers
c		An association representing physicians
d		An association representing nurse midwives

Answer 1

1. Why has the American Medical Association (AMA) favored subsidies to those with low incomes (Medicaid) but opposed Medicare, which provided subsidized healthcare to all the aged? The largest increase in demand would come from extending insurance to those unable to pay. Those with higher incomes presumably have private insurance coverage or can afford to pay physicians. Extending government subsidies to those currently able to pay would greatly increase the government's cost, which would result in the government developing a concentrated interest in regulating physician fees. b. The AMA was concerned that the aged already had comprehensive private health insurance, so subsidizing the aged would merely raise everyone's taxes. c. The AMA opposed subsidizing the aged because the unions favored it and the AMA opposed the unions' political agenda, which was to establish a single-payer system for the United States. d. The AMA believed it could use subsidized healthcare for all the aged as a bargaining ploy to have the government also subsidize physicians' malpractice insurance. The two important reasons for favoring government subsidies to low income individuals (Medicaid) are, 1). Extending the medical insurance coverage to those that are unable to pay would create a great demand. People with higher financial resources have private insurance coverage 2). Applying the govermments subsidies to those with higher incomes increase the healthcare program the government cost