Explain how can these limits to reimbursement

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Medicare and the economics of health care

One method commonly used by both governments and private health insurers to control the growth in 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 form 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?

 

Reference no: EM1333769

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