9. Health Insurance Market The Affordable Care Act established Health Insurance Marketplaces (HIM) for individual market and small group market. Let us focus on the one specific provision in the individual market. For individuals whose household income is under 250% of Federal Poverty Line (FPL), when they enroll in a silver plan from HIM, they will be automatically enrolled into a same-benefit but lower cost-sharing plan, compared to individuals above 250%. For simplicity, these cost-sharing reductions lower the coinsurance rate for individuals below 250% FPL in a silver plan from 25% to 10%. Suppose that we have two nearly identical individuals Jill and Anne (single, no other household members). Based on their employment contract, Jill's projected household income is 250% FPL, whereas Anne's projected household income is 251% FPL. They both enrolled in the same silver plan via DC Health Link. Now answer the following questions 1-2. A. The graph below contains two ("nominal") demand curves for physician visits (D1 and D2). Please label which is for Jill? Anne? Briefly explain. 100 D₂ 10 Physician Visits (Q) Price (P) 40 20 16 D₂ an

9. Health Insurance Market The Affordable Care Act established Health Insurance Marketplaces (HIM) for individual market and small group market. Let us focus on the one specific provision in the individual market. For individuals whose household income is under 250% of Federal Poverty Line (FPL), when they enroll in a silver plan from HIM, they will be automatically enrolled into a same-benefit but lower cost-sharing plan, compared to individuals above 250%. For simplicity, these cost-sharing reductions lower the coinsurance rate for individuals below 250% FPL in a silver plan from 25% to 10%. Suppose that we have two nearly identical individuals Jill and Anne (single, no other household members). Based on their employment contract, Jill's projected household income is 250% FPL, whereas Anne's projected household income is 251% FPL. They both enrolled in the same silver plan via DC Health Link. Now answer the following questions 1-2. A. The graph below contains two ("nominal") demand curves for physician visits (D1 and D2). Please label which is for Jill? Anne? Briefly explain. 100 D₂ 10 Physician Visits (Q) Price (P) 40 20 16 D₂ an

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

ChapterST7: The Economics Of Health Care

Section: Chapter Questions

Problem 1CQ

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The cost of employer-sponsored health care benefits are expected to approach $16,800 per employee next year. Big employers project that their total cost of providing medical and pharmacy benefits will rise 6 percent for the sixth consecutive year. The total cost of health care, is estimated to average $17,800 per employee in 2022, up from $7,099 last year. Large employers will cover roughly 70 percent of those costs. For Employers, what is the “OPPORTUNTY COST “of health care? (not the price.)
Explain how each of these situations will affect the quantity demanded of health insurance: d) New technologies that enable medical illness to be predicted more accurately. e) A tendency among buyers to become less risk, on average.
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.
One of the most robust, fundamental “facts” of health economics is the SES and health gradient. a) Define the SES and health gradient. b) Give three ways in which the SES and health gradient is robust. c) Provide evidence that some of the gradient is correlational (i.e., give a potential confounder) and evidence that the gradient is in fact causal. d) i. Give an interpretation of Figure 1 below in layperson terms. ii. What pattern do you see for men vs women? iii. “The education and mortality gradient does not depend on healthcare spending or whether the country has universal healthcare.” Use Figure 1 to support or refute this claim.
Suppose that your utility function over health care (h) and other goods (c) is given by U(h, c) and that you have a fixed income of $100. (Assume that the indifference curves of your utility function bear the usual convex shape.) Each year, you choose h and c to maximize your utility subject to a budget constraint: phh+pcc=Ywhere ph is the price of health care, pc is the price of other goods, and Y is your income. In year 1, the price of health care is $1, while the price of other goods is $2. At these prices, you demand 30 units of health care and 35 units of other goods. In year 2, your utility function and your income do not change, but prices do. Health care becomes more expensive at $1.50, while other goods become cheaper at $1.50. At these prices, you demand 20 units of health care. a. Assuming you spend all your income in year 2, how many units of other goods do you buy?b. Draw a graph with your demand for health care on the horizontal axis and your demand for other goods on the…
Between 2008 and 2010, TOTAL EMPLOYMENT in the United States Declined by approximately 5.1 percent. During this same time, jobs in the Health Care industry Increased by 6.4 percent. What is the name of the theory that describes this phenomenon, and use it to explain WHY the health care industry did not decline with the rest of U.S. employment.
The stated premise behind the production function for health is that medical care, when combined with other inputs and a person's own time, produces good health. What is the marginal contribution of medical care to the production of health in the United States? Will spending more money on medical care improve the health of Americans, or is there another strategy that would work better? How would your answer change if you were studying health in a less-developed country?
Can you explain As members of the Baby Boom generation approach advanced ages, their demand for medical care will change. Referring to the graphs below, will this demand change be reflected in the movement from point A to to point B, or in the movement from D1 to D2? Please explain your answer.
Suppose that the graph below illustrates the demand for healthcare services given a coinsurance plan of 25%, what would be the expected change if the participant changed jobs and received a plan with 100% coinsurance?
Please no written by hand and no image How do you do this in excel? Suppose you are collecting data from a country like Japan where the government sets the price of health care. Each prefecture in Japan has a different set of prices (for example, Tokyo has higher prices than rural Hokkaido). Data for 1999 is displayed in Table 2.12. Table 2.12. Outpatient utilization in Tokyo and Hokkaido, 1999. RegionOut patient visitsPrice/visitsTokyo1.25/months20Hokkaido1.5/months10 A) What is the arc price elastic of demand for health care consumers in Japan (using only this data)? B) Suppose that incomes are generally much higher in Tokyo than Hokkaido. Is your answer to the last question an overestimate or underestimate of price elasticity? Justify your answer. [Hint: It may be helpful to plot the data points from Table 2.12 and consider likely demand curves for Tokyo and Hokkaido.] C) Using your estimated elasticity, what would the demand for health care be if the price in Tokyo were raised to…
Please paraphrase this answer with your own words (not AI) making sure it correctly answers this question: Explain why the percentage of all money paid to hospitals “out of pocket” is much smaller than the percentage of money paid out of pocket for all health care goods and services. Compared to all healthcare goods and services, the percentage paid out-of-pocket for hospital care is lower because it costs more than other types, but it's possible that the actual amount paid for hospital care out of pocket will still be substantial even if only a smaller percentage of costs are covered. Similarly, when it comes down to different healthcare options available out there, hospitals tend to have a greater sense of urgency attached which makes them an essential component in treating diseases, thus making sure that the financial aspect does not hinder the patient's decision-making process while seeking medical aid. Insurance policies that cover hospitals are typically more thorough than…
All other things equal, if an individual earning $100,000 per year has an income elasticity of demand for health care of 0.4, if her salary increases by 10%, her expenditures on health care will increase by $4,000. True False