-. In 1994, 565 economists sent President Bill Clin- ton a letter warning against the economic...

Transcribed Image Text:

-. In 1994, 565 economists sent President Bill Clin- ton a letter warning against the economic conse- quences of price controls that played such a prominent role in his health care reform plan. The price controls included mandated fee schedules for fee-for-service medical plans, prospective budgets for regional health alliances, increases in health insurance premiums tied to the cost of living, and price ceilings on prescription drugs. Discuss the economics of price controls. Under what circum- stances do they accomplish their intended pur- pose? When do they fail? -. In 1994, 565 economists sent President Bill Clin- ton a letter warning against the economic conse- quences of price controls that played such a prominent role in his health care reform plan. The price controls included mandated fee schedules for fee-for-service medical plans, prospective budgets for regional health alliances, increases in health insurance premiums tied to the cost of living, and price ceilings on prescription drugs. Discuss the economics of price controls. Under what circum- stances do they accomplish their intended pur- pose? When do they fail?

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Cost controls allude to governmentforced limitations on the costs of labor and products They can appear as either cost roofs most extreme c... View the full answer