Which of the following best describes the first government step in try

Which of the following best describes the first government step in trying to stop constantly rising costs?

a. Insurance companies were told to cease adding new members to their plan.
b. Payment reimbursement was based on diagnosis and client characteristics rather than on treatment given.
c. Physicians were limited to a maximum amount that would be paid for any particular service.
d. Reimbursement was based on prospective payment; that is, in advance of admittance for care.

ESSAYBID ANSWER

ANS: B
The first efforts to control costs were made by the federal government when Medicare hospital reimbursement was based on a prospective payment system. Payment would be based on a classification system that identified costs according to diagnosis and client characteristics. Restricting insurance companies to add new members to their plan was not part of the first steps to try to stop constantly rising costs.