Which program allow gnuti citizen to smooth consumption

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Reference no: EM131192408

Catastrophic injuries and illnesses account for two-thirds of total health care costs in the country of Gnut. The Gnuti government is deciding between two different universal health insurance programs:

program X would pay for two-thirds of any health care expense that a Gnuti citizen incurred, while program Y would pay only for catastrophic illnesses and injuries but would cover 100% of those costs.

Which program is likely to better allow Gnuti citizens to smooth consumption? Which program is likely to cost the Gnuti government less? Explain answers.

Reference no: EM131192408

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