Advmacro hw (17)

2. A) Discuss health insurance contract?     b)What schemes are applicable for routine medical check-up and diagnostic tests?

Answer the following questions: a. Some health analysts believe that physicians try to increase their income by inducing demand for their services. For example, physicians may order unnecessary tests and treatments. Why would patients willingly accept these additional tests and treatments? b. How does the Internet, which makes freely available all sorts of information about diseases and their treatments, affect the physician–patient relationship?

Q)What are some reasons that health care markets may not be perfectly competitive? a. Many types of employees in health care must have licenses   b. Insurance means consumers do not pay the full market price for the good or service   c. Consumers lack information   d. All of the above

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Suppose the government imposes a system of price ceilings in the health care industry as part of an overall health care reform bill. a) what happens to the amount of market exchange ? b) explain the impact of the price ceiling on efficiency  c) who bears the cost of the regulation?

Economics Use the following information to determine the costs to you and/or to the insurance company for the following occurrences:1) You have $500 per person Wellness Benefit.2) You have a $500 İndividual Deductible and your family (spouse and children) has a $500 Family Deductible.3) You have a $10,000 annual Maximum Family Out-of- Pocket expense provision.4) Once you have met your Individual or Family Deductible, your insurance will pay 80% of the expenses and you will pay 20% as your co-pay.Unless the occurrence is a Wellness expense, you and/or your family have to meet their deductibles first before insurance will pay anything. Example:Assume that you have met your deductible, and you go to the Emergency Room for a large cut on your shin which required cleaning, 20 stitches, a tetanus shot, and antibiotics. (80/20 plan)Total Charges = $2,500 totalYour Responsibility = $2,500*.20 = $500 (goes toward your Max Out of Pocket)Insurance Responsibility = $2,500*.80 = $2,000 Question:…

Most systems of medical insurance substantially lower the out-of-pocket costs consumers have to pay for additional units of physician services and hospitalization. Some reduce these costs to zero. How does this method of payment affect the consumption levels of medical services?Might this method of organization result in “too much” consumption of medical services?

81.The problem with community rating is that it: A)causes moral hazard. B)results in poor-quality health care. C)is very unpopular with health care providers. D)may cause adverse selection. 82.The individual mandate is the requirement that: A)each health care provider must provide care for Medicare patients. B)each health care provider must provide care for Medicaid patients. C)each individual must purchase health insurance. D)everyone must go to school for at least 12 years. 83.To ensure that low and middle income families have health insurance, the Affordable Care Act of 2010 _____ low- and middle-income families _____. A)provides government subsidies to; to make insurance more affordable B)requires that all; be covered by Medicare C)requires that all; be covered by Medicaid D)forces; to find employers that provide health insurance 84.Poverty can be defined either in absolute terms or in relative terms. A)True B)False 85.The…

The impact of changing economic realities in the healthcare setting. Consider the customer perspective, organizational perspective, and provider perspective.

The Affordable Care Act contained provision for dramatic expansion of the Medicare program.TrueFalse QUESTION 11 Health economics can be defined as:   A. An examination of factors that impact healthcare   B. An explanation of theories, models and tools that can be applied to understand costs, access, and quality   C. One way to understand how best to compare and contrast alternatives   D. Help healthcare leaders understand the costs and consequences of options   E. All of the above   QUESTION 12 The largest health insurance program in the United States is   A. Medicare   B. Blue Cross-Blue Shield   C. Veterans' Affairs   D. Medicaid

1. An individual has a health insurance plan with a deductible of $1200 and a coinsurance rate of 50%. Their demand curve is Q=20-(P/10), and the equilibrium market price of medical care is $100 per unit. What quantity of medical care would the individual choose to consume? 2. Suppose that consumers are all risk neutral and so they do not purchase health insurance. The equilibrium price of a doctor visit is $30, the supply of doctor visits is perfectly elastic, and the aggregate demand for doctor visits is given by Q=200-5*P. Calculate the effect that universal perfect health insurance (that is, coinsurance rate=0) would have on social welfare, measured as the sum of consumer surplus plus producer surplus. 3. Consider a version of the Akerlof model in which neither buyers nor sellers observe car quality (though somehow – please suspend your disbelief – both buyers and sellers enjoy higher utility from higher quality cars). For this question, please assume that both buyers…

Use the information in the following paragraph and Table 1 to answer questions 1 through 10. Assume 5 providers are willing to offer a medical care service in a market. These providers are described in Table 1. These providers vary in their quality level. Quality ranges in a scale from O (lowest) to 4 (highest). Quality services are costly to produce. Each unit of quality increases service cost by $80. Providers produce services if the price of the medical care service covers their cost. Individuals value quality and are willing to spend $100 per unit of quality within a service. Providers know their quality level, but individuals only know the average quality level of the providers in the market. Patients are willing to purchase a service if the expected value of the service is greater than or equal to the price of the service. Table 1: Provider Information Summary Provider Service Quality Level Cost to Produce a Unit of Service 1 4 3 3 2 4 1 1. How much does it cost Provider 4 to…

Prompt-  Questions 1 through 6 will ask you to consider the market for antibiotics.  On November 23, 2022, the New York Times published a story titled “Flu and R.S.V. Hit the Holidays, Heightening Demand for Antibiotics and Antivirals”.  You do not have to read the story to understand the setup of these questions. Please, carefully read each question to understand when these changes are introduced into the initial scenario. Here is what you should focus on to complete your analysis. For this analysis, assume the antibiotic market is perfectly competitive, demand is downward-sloping, supply is upward-sloping, and production technology results in traditional U-shaped MC, ATC, and AVC Finally, for all questions, assume market price is always greater than the minimum of the AVC You will be using the same graph in all questions that require a graph (Questions 1, 3, and 5), with each question asking you to add new elements to the graph as part of your analysis.  QUESTION 1-  Assume that…

what is the relationship between the financial well-being of the industry and availability of healthcare, in consideration of market and demand theories?

Read the following article and then answer the questions that follow: Without question, the most important positive action you can take to prevent illness and disease is exercise. Exercise prevents a long list of diseases that can cause chronic or severe illness, disability, and even death, including cancer, heart disease, stroke, high blood pressure, vascular disease, diabetes, obesity, and osteoporosis. Exercise also prevents mental health illness and disease disorders, including depression, anxiety, and stress. While some of these disease processes can be reversed with exercise and healthy life-style, some cannot. Preventing them from starting is the number one goal. The most negative lifestyle behaviour is smoking. Smoking contributes to the development of almost all diseases, notably cancer, heart disease, high blood pressure, high cholesterol, diabetes, and asthma. Smoking has the following negative health effects: lowers immunity, making you more likely to get bronchitis,…

This is a Microeconomics problem.  (a) What is adverse selection in the context of a market with asymmetric information?  (b) Explain how adverse selection can cause undesirable outcomes in a health insurance industry over time.

Question 60 options :   What is the best way for governments to intervene to prevent moral hazard ? A). Charge co - payments on any government - funded health care service B). Ban private health insurance providerse C). Provide information to consumers on the goods offered by private health insu providers D). Mandate that private health insurance providers must not discriminate by age , pre - existing health condition

Give typing answer with explanation and conclusion  Suppose that a consumer’s demand curve for medical care is QD = −3P +17 with P = $5. Suppose that the beneficiary obtains an insurance plan through an insurer with a 25% coinsurance rate. Under the insurance arrangement, find the following:   (a) Equilibrium price and quantity of medical care?   (b) Magnitude of deadweight loss?   (c) Cost to the beneficiary?   (d) Cost to the insurer?

What is the difference, if any, between “Pharmacoeconomics” and “Health Economics”? Explain how microeconomics and macroeconomics are relevant to this field of study and support your answer with plausible examples. Based on your answer, illustrate why studying Pharmacoeconomics has become inevitable and remarkably essential in healthcare provision nowadays.

Suppose the demand for anxiety medication prescriptions is given by P = 300 – Q. Suppose the marginal cost for a prescription of anxiety medicine is constant at $100 per prescription. a.   What is the quantity demanded in the absence of any insurance coverage for anxiety medication? b.   Now, suppose there is full insurance coverage for anxiety medication (i.e. no cost-sharing at all). What is the new quantity demanded? c.   Finally, suppose insurance covers anxiety medication, but there is 20% coinsurance, meaning that individuals must pay 20% of the cost of anxiety medication out of pocket. What is the new quantity demanded? d.   Under the insurance structure given in part (c), what is the deadweight loss associated with the presence of insurance coverage?

Describe information imperfection and its role in market failure.  Do consumers possess perfect acknowledge regarding their health status and the treatment options available to them?

the stock market. What general economic assumptions of markets do not apply to healthcare? Explain why.

What impact does AI have in healthcare and how does it play a factor in the economy? Please provide the explanation in detail and source of information.

Explain the different methods concerning the cost benefit analysis (Health economics)