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Suppose that the Medicare rate of hospital reimbursement is reduced. costs may not be shifted to...

Suppose that the Medicare rate of hospital reimbursement is reduced. costs may not be shifted to other patients in the short run. Explain why the costs may not be shifted to other patients in the short run.
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Answer: The increased cost of medicare makes only those people to avial the better treatment who has a good economy. But if the cost of medicare will be reduced then there will be a chance of that people may get the better facilities of health care.  

The reimbursement of the medicare can not be shifted to other patients in short run as this may cause many problems to the system also. By lowering private prices in response to reduced public ones, a hospital can increase its chances of inclusion in more plans’ networks, thereby attracting more privately insured patients. There are many other charges of the hospital bills and expenses. Government sometime may not find it worth to spend more money.

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