Answer to Question #49619 in Economics of Enterprise for Chris-Obi

Question

How can Medicaid payments create an excess and a shortage of patients at the same time?

Answer 1

Medicaid in the United States is a social health care program for families and individuals with low income and limited resources. The Health Insurance Association of America describes Medicaid as a "government insurance program for persons of all ages whose income and resources are insufficient to pay for health care."
Medicaid payments can create an excess and a shortage of patients at the same time, when there are excess patients to get medical services and a limited ability to provide these services to all of them, if the cost of services is to high to cover it with the federal budget.