What is the primary cause of McAllen's extreme healthcare costs, according to the material?

• A. Insurance industry lobbying
• B. Across-the-board overuse of medicine without improving quality
• C. Lack of medical technology
• D. Low patient demand

Answer: (B)

The main idea is that the cost explosion in McAllen comes from overuse of medical care that doesn’t translate into better outcomes. When there are plenty of physicians, hospitals, and procedures, providers tend to order more tests, hospital stays, and interventions because reimbursement rewards volume. This supply-driven overutilization raises spending even though the health benefits aren’t increasing proportionally. McAllen’s pattern showed high levels of care—more hospital days and procedures—without clear improvements in quality, pointing to wasteful, low-value care as the primary driver of costs.

The other factors don’t fit as well. Lobbying by insurers can influence costs, but it isn’t identified as the central cause of McAllen’s extreme spending. A lack of medical technology would imply underutilization or limited capability, which isn’t the case there. Low patient demand would tend to lower utilization, not push it up to such high levels.