a) Suppose that a company pays its workers $20 per hour and provides an additional $2 per hour worth of fringe benefits, including a basic health insurance policy. With the aid on an appropriate graph discuss the firm’s reaction to a state mandate that requires it expand the items covered in the health care policy. (b) What is likely to happen to the number of people covered?
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(a) Suppose that a company pays its workers $20 per hour and provides an additional $2 per hour worth of
(b) What is likely to happen to the number of people covered?
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- While the individual mandate clause in the Affordable Care Act (also known as, Obamacare) was still in effect, which market failure in the market for health insurance did it help to reduce? Group of answer choices A.) Increasing Returns to Scale. B.) Moral Hazard. C.) Adverse Selection. D.) Barriers to Entry. E.) Externalities.As most countries are dealing with the second wave of coronavirus,policy makers are faced with a trade-off between maximizing social distancing measures to suppress the disease & the need to maintain some sense of normal economic activity.Some pundits claim this to be a classic example of equity-efficiency trade-off in economic policies.As an expert in Economic Analysis & policy what do you think?Explain the different methods concerning the cost benefit analysis (Health economics)
- What is the primary reason why social insurance exists? a-the moral hazard problem increases costs of providing private insurance. b-the adverse selection problem prevents private markets from offering the optimal quantity of insurance. c-the government is usually better at allocating resources than private markets. d-all of these.The federal government gives a state a _____ grant, promising to pay the state $0.25 for every $1 the state spends on health care for senior citizens, which _____ the price of health care to the state by 20%. a. block; increases b. block; decreases c. matching; increases d. matching; decreasesThe figure shows estimated medical costs versus what a user actually pays for three health insurance plans with different deductibles. For which plan does the user pay the least for estimated medical costs of $4,000? **SEE DIAGRAM** $500 deductible plan $1,000 deductible plan $2,000 deductible plan The user pays the same for all three plans.
- The decline in hospital days per 10,000 population between 1980 and 2007 reflects: A. An increase in number of times individuals were admitted/discharged from the hospital. B. A decrease in the average length of time they stayed in the hospital once admitted. C. A decrease in number of times individuals were admitted/discharged from the hospital. D. A and B. E. B and C. QUESTION 2 What distinguishes a preferred provider organization (PPO) from a traditional health maintenance organization (HMO)? A. There is no distinction, both HMOs and PPOs are focused on costs and outcomes and are considered managed care organizations B. Both are similar to POSs (point of service plans) C. HMOs are generally more restrictive when it comes to standards and cost controls on providers and enrollees D. All of the above E. A and C onlyWhat is the opportunity cost of having health insurance? What is the opportunity cost of not having health insuranceWhat are the pro and cons of National Health Service and National Health Insurance when controlling costs while maintaining high quality of care?
- Explain how market justice and social justice complement each other, yet also clash and collide with regards to the US health care delivery system by correctly matching the following items Private health insurance coverage received mostly by working middle class Americans through their employers. Health coverage received by America’s most vulnerable population through government-sponsored health programs (i.e. Medicaid, Medicare, SCHIP, etc.) When there are Americans who cannot afford to buy health coverage or are unemployed When there are Americans who are “too rich” to qualify for government sponsored health coverage such as Medicaid and therefore end up with no access to…Make the business case why healthcare providers should advocate for expansion of insurance coverage for the poorJay Bhattacharya and M. Kate Bundorf of Stanford University have found evidence that people who are obese and work for firms that have employer-provided health insurance receive lower wages than people working at those firms who are not obese. At firms that do not provide health insurance, obese workers do not receive lower wages than workers who are not obese. Source: Jay Bhattacharya and M. Kate Bundorf, "The Incidence of the Health Care Costs of Obesity," Journal of Health Economics, Vol. 28, No. 3, May 2009, pp. 649-58. Firms that provide workers with health insurance may pay a lower wage to obese workers than to workers who are not obese because the former tend to be less healthy and consequently A. more costly to insure and therefore employ due to their higher claim submission rate. B. less productive at work. C. experience higher rates of absenteeism and early retirement. D. all of the above. E. A and B only. Regarding the…