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Many economists believe that the United States has become too reliant on health insurance, especially for small or routine expenditures. They believe that excessive insurance exacerbates the moral hazard problem and thereby drives up healthcare costs.
-Who among the choices below do you think is largely responsible for the problem of excessive insurance? Provide explanations and citation for your response.
-Government Insurance through Medicare and Medicaid, or
-Private health insurance provided through employers
-Describe the "Cadillac Tax" and how it is designed to partially remedy the problem of excessive insurance. Use economic concepts to explain.
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