what is the medicaid crowdingout problem and why is it impor

what is the medicaid crowding-out problem and why is it important?

Solution

Medicaid crowding out refers to a situation where the government enrols all its citizens into Medicaid which crowds out private health insurance as people would not enrol to private insurance.

This is important as the costs on the part of government costs as it needs to borrow money to finance the medical treatment. This would increase the interest rate which affects investments and borrowing from private firms eventually reducing the GDP of the nation.