In 2007, Hawaii Began Providing Universal Health Care Coverage to All

Multiple Choice

In 2007, Hawaii began providing universal health care coverage to all children, but the Hawaiian government ended the program in just 7 months. Government officials claimed that most of the children who received government coverage dropped their private insurance to become eligible for the program. As a government official stated, "People who were already able to afford healthcare began to stop paying for it so they could get it for free." In this example, Hawaii's universal health care coverage caused:

A) crowding out.
B) expansion drift.
C) impure prevalence.
D) supplier-induced demand.