limit approval of services to health care recipients. How is this practice affecting recipients of…

1. One method commonly used by both governments and private health insurers to control the growth in health care spending are limits to reimbursement to providers. How can these limits to reimbursement be viewed as the exercise of monopsony power? To prevent health care providers from prescribing more services it is often common to limit approval of services to health care recipients. How is this practice affecting recipients of Medicaid and Medicare?2. There is a concern that government funding to extend health insurance to the currently uninsured would increase cost per visit. Re-draw Figure 9.Expenditures on health care in the United States have risen rapidly since 1965, absorbing 16 percent of GDP in 2006. 

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