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HMS, HAG NSE-Bank 17 MC

The table shows the Australian Government’s health expenses for 2020–21 and projected health expenses for 2023–25.
 

What could account for the projections shown?

  1. Decreased spending on Medicare, increased private health insurance uptake
  2. Decreased spending on Medicare, decreased private health insurance uptake
  3. Decreased spending on health promotion, increased private health insurance uptake
  4. Decreased spending on health promotion, decreased private health insurance uptake
Show Answers Only

D

Show Worked Solution
  • D is correct: Decreased spending on health promotion and decreased private health insurance uptake would both increase reliance on government-funded healthcare and therefore increase projected expenditure.

Other options:

  • A and C are incorrect: Increased private health insurance uptake would reduce reliance on government-funded healthcare.
  • B is incorrect: Decreased spending on Medicare would not account for an increase in projected government health expenditure.