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Medicaid pays first-dollar coverage for medical expenses.  This practice usually results in moral hazard and deadweight losses.  Yet,...

Medicaid pays first-dollar coverage for medical expenses.  This practice usually results in moral hazard and deadweight losses.  Yet, moral hazard and deadweight loss are small for low-income adults and their children.    Why do you think these younger, low-income populations do not experience more demand for medical services?

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