Case 2: Imperfect Information And Adverse Selection

In the book on a citizens guidelines to policy and politics, Katherine Fierlbeck argues that “The 1983 Canada Health Act replaced the 1947 Hospital Insurance and Diagnostic Services act because of the shift from a system of 50-50 federal-provincial cost sharing to a system of block funding established in Ottawa in 1977” (Fierlbeck 2011, pg.20). Until the period of the mid 1980’s, the Canadian health care system is to be categorized in a disarray, having no foundation to components and accomplishment. The system is to rely mainly on cost sharing; whereby in a health insurance policy only a portion is paid by the health insurance. While enabling the insured party to pay a portion of the price of covered services. In this case, cost sharing is based on 50-50 provincial and federal cost-sharing agreement to a fault. By Ottawa giving tax transfers to the provinces in replacement of direct transfers, but the federal government had no capacity to conceal cash. This in return is able to affect provinces because it deprived the federal government effective, efficient, and responsive measure of provinces holding the five principles of the Canada health care. According to About Canada Health Care, Pat Armstrong and Hugh Armstrong speaks about the five principles of health care, which are; “Public administration, Comprehensiveness, Universality, Portability, and Accessibility” (Pat Armstrong & Hugh Armstrong 2008, pg.28). These five principles holds the provinces accountable to the

Canada 's healthcare system is praised globally for its universal and free healthcare. It started to take shape after World War II in 1945. Health insurance was introduced and was attempted, but was not successful even though there was an increase in the spending of health related services and goods. Fast forward a few years to 1961 where Tommy Douglas, the premier of Saskatchewan, developed the idea for an all-inclusive insurance plan. He later inspired the Medical Care Act in Canada in 1967, when he pointed out health care is a right for all Canadians. From this one thought, Canada has become of the many countries with a universal health care system. Ever since Tommy Douglas sparked the idea for health care coverage, Canada is praised for the way it carries out its system because of several key features. This system is publically funded, is universal and is accessible to everyone across the nation. Because this is a public system, funding comes from the tax payers and some federal funding, so there is no extra cost for the patients. Also, being a universal system it has offered care to all Canadians, immigrants and visitors. Unlike the U.S who does not provide healthcare to its entire population because it is a private system; access depends on how much someone could afford, and how

Tuition rates have been on the rise since the start of colleges. In 1988, the average college tuition was about $2,800 for a year of schooling. In 2008, that number had risen 130% to nearly $6,800 for one year; according to Annalyn Censky of CNN Money, if the average income had raised the same amount, median family earning would be roughly $77,000 a year, instead of the current $33,000. Americans are making $400 less on average than they did in 1988 says Censky. Over the past twenty years, college has risen 5% of the median family income from 12% to 17%; private colleges went from 27% to 47% says Economist.com. (1 SV; SV.) Tuition isn’t the only thing rising at colleges: room, meals, books, and other fees are rising as well. (4 SV: A,B,C,D.) This also takes its toll on families as well as the students themselves. Many students

     In the past, Canada’s government-funded, universally accessible, health care system has been praised and admired both at home and abroad as one of the finest in the world. A great source of pride and comfort for many Canadians is that it is based on five fundamental principles. Principles that are a reflection of the values held by Canadian citizens since the formation of Medicare in 1966. These principles were reinforced in the Canada Health Act, (CHA), of 1984 and state that the Canadian system is universal, accessible, portable, comprehensive and non-profit.

The Canada Healthcare act [R.S. 1985, c. C-6] passed in 1984. It ensures that all residents of Canada have an equal access to necessary physician services, no extra billing from physicians and hospital. The act is on five main principles, Public administration necessary services are to offer on a non-profit basis. Next, accessibility coverage with no extra charges and comprehensiveness coverage for all medically necessary services at all times. Portability coverage is to extend to all residents in all provinces and territories. The fifth principle is universality coverage for all eligible residents of all provinces and territories (SEDAP, 2007).

Canada’s health care policy was designed to give all residents equal right and access to health care professionals. Although health care is available to all Canadian citizens, it publicly funded, not free. The provinces have separate health care plans but they all share common characteristics which were decided in the Canada Health Act. The Canada Health Act of 1984 was an amalgamation of two previous acts with an addition to give all Canadians access to health services; however, recently Canada’s health care policy has been challenged. It has been argued that there is confusion in the meaning of accessibility (Wilson & Rosenberg, 2004) and that Canada’s health care policy does not address the need for competent patient care (Liberman,

Canada is known for its universal health care system. Health care services across Canada are financed by the government and follows the guidelines of the Canada Health Act (1984) Which states: “ to protect, promote, and restore the physical and mental well being of residents of Canada and to facilitate reasonable access to health services without financial or other barriers”. The Canada health act includes medically necessary hospital diagnostic and access to a physician. Further more portability between

“Tuition was free just fifty years ago… Germany has eliminated tuition in the last eight years” (Wiener). This leads people to wonder why our education system has declined. If the United States had one of the best systems and didn't charge for the education, what happened? The education system began changing during the great depression. Due to the depression, many people dropped out of school creating an education gap. While the United States depression affected the rest of the world economy, other countries were able to keep their education rates steady. During the recession, education tuition began to steadily rise due to the exponential increase in enrollment. Since the recession, college tuition rates have risen faster than the economic inflation (Fillion). Why has tuition grown? Simple. Politics. Many universities are constantly upgrading to the next and best technology to woo potential students and faculty. Education is no longer about education to a university. It’s purely about the money. Universities receive more money per person than a community college does, yet tuition continues to grow (Bessen). Community colleges are less likely to purchase the next best thing the moment it comes out. For this reason community colleges often have a tuition of ten thousand dollars or less. “A year of community college is less than food stamps for a lifetime”

In Canada, individual provinces and territories receive funding for health care services by the federal legislation of The Canada Health Act. There are mainly five principles of this act. These are:

College tuition has been increasing its price over the years. Supposedly, the reason for higher tuition, is inflation. According to an article on USA today, under the College section, “In the past 12 months, the rate of inflation stood at 2.2%, according to the U.S. Department of Labor. Colleges, however, appear to be increasing their tuition rates by nearly double the inflation rate — a trend that has been consistent for

These principles ensure that: healthcare insurance plans are administered on a not-for-profit basis by a public authority; the plan insures all medically necessary services provided by hospitals and physicians; entitles all of the insured population to insured health services; the plan provides reasonable access to insured hospital and physician services without barriers; residents are entitled to a certain level of coverage when they travel within Canada (Health Canada, 2012a). Provinces are free to ignore these principles, although the federal government can then withhold funds under the Canada Health Transfer (Deber, 2016).

College is increasing its prices exponentially. Of those who do reach college, most are only able to do so by taking loans and amassing enormous amounts of student debt. This often leaves those individuals in poor financial shape for the majority of their adult lives. College prices have increased tenfold from 1978-2008 and textbook prices are now eleven times more expensive than they were in 1977. Many people start their time as an adult paying their large student loans imposed on them by their college. American education is in shambles. Our schools are expensive, overcrowded, and underperforming.

As more and more high school students realize this, the increased demand and need for college is going to go up. According to the Lumina Foundation for Education, colleges are realizing students and families are willing to go into debt as to increase their post-secondary education income (Dickeson). What about the others who cannot afford to go this route? Individual states play a major roll in the cost of higher education. If anyone has been watching the news lately, they most likely have seen states facing budget problems and shortfalls. With this being said, it now means most of the problem has been shifted onto the shoulders of the parents and aspiring students. Justification for these outrageous costs is being demanded not only by parents, but also by state and federal officials. According to the College Board, “In the past five years, the average cost of in-state tuition and fees at public colleges has jumped 35% -- after adjustment for inflation. . . . In the past 25 years, the average cost of tuition and fees has risen faster than personal income, consumer prices and even health insurance” (Block 1). Tuition prices pose a serious problem, especially for families whose income cannot keep up.

Nearly 30 years ago the average college tuition for a student at a University was relatively around $6,285 for room, board, and tuition. Today the average tuition is $32,000. Why isn’t this still offered today? What has made college tuition grow to be so expensive today? This is an issue that not only affects college students, but people who want a prestigious education. Raising tuition prices are starting to change peoples mind about what they really want to do with their life. Not giving the opportunity of an education to someone who has no money sounds wrong and unfair. College tuition should be more affordable to students because increasing tuition prices give less of an opportunity to students who want an education.

College tuition costs, as well as room and board, are increasing dramatically. “Tuition and fees at community colleges are up 24 percent more than inflation over the past five years, according to a new College Board survey. Which cost for in-state