Cost Shifting

Cost shifting, often termed as externalization, pertains to the practice of transferring the expenses associated with an operation from one entity to another, all while reaping profits. One illustrative instance involves large corporations, such as Walmart, employing low-wage workers who rely on Medicaid for their health insurance coverage. One perspective asserts that these corporations are passing on the burden of healthcare costs to the government. Conversely, an opposing viewpoint contends that, in the absence of a single-payer healthcare system, the government has effectively shifted the responsibility for healthcare expenses onto corporations.