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A person lives for 3 years with a disease and the current standard of care for that disease means he/she lives with a utility level of 0.7 .
If that person takes a new medicine (Medicine A) because of which his/her utility level increases to 0.8,
If another new medicine (Medicine B) prolongs the patient’s life by 2 years, at a utility level of 0.7,
-Calculate the new QALY
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- One of the key provisions of the Affordable Care Act was the ensuring coverage for “pre- existing conditions,” which had formerly been excluded from insurance plans as people with known medical conditions that will require treatment with certainty, the costs of which are virtually guaranteed to be more than the premiums that insurance companies could charge Suppose we have a population of patients with different health profiles, so that the cost of future treatment X is uniformly distributed on the interval [0, 1000], X˜ ∼ U [0, 1000]. Suppose that we have an insurance company that is bound to offer the same plan to all customers who wish to buy it and cannot deny coverage based on pre-existing conditions. The market for insurance is competitive, so that the insurance company must set its premium equal to the expected future payout. P = E[X˜] Another key provision of the ACA was the “individual mandate,” which required…Let W represents an individual’s annual earned income and U(W) = (W/10)0.5 is this individual’s von Neumann-Morgenstern utility index (or utility function) . This individual earned income is $49,000. This individual faces the prospect of a 20% chance of needing health care, with a price tag of $13,000. Assume this person is risk averse. Also assume that the insurance company has only claim costs and that administrative costs are $0. The maximum health insurance premium this individual is willing to pay is??The doctor must decide which medication to prescribe to the patient. Possible states are s∈[0,1]. She has three medications available: A, B, and C. The effect of medication A is described by the blue function, the effect of medication B by the red function, and the effect of medication C by the black function. For which medication will the doctor decide if she decides based on the maximax criterion and Wald's maximin criterion? The blue function is defined as fA(s)=1/5(cos(4s)+2), the red function is fB(s)=2/5(sin(4s)+1), and the black function is fC(s)=1/2. For which medication will the doctor decide if she decides based on Laplace's criterion?
- QUESTION 13 The size of the uninsured and underinsured population in the United States has become an indication of the access problems in the US healthcare system.TrueFalse QUESTION 14 If the expected age of death for a male aged 20 is 75, then a 20-year-old man who dies is considered to have lost how many years of life? A. 20 years of life B. 75 years of life C. 55 years of life D. None of these QUESTION 15 Why is survival time considered to be a good indicator of health status? A. It measures health outcomes as compared to costs B. It places an emphasis on the time spent(duration) in a specific health state C. The measure accounts for mortality rates D. It measures outcomes or health state at a given point in timeSuppose we allocate a fixed budget for tuberculosis screening between two alternatives: screening the population generally, which has a marginal cost per test of MCG and a marginal benefit of MBG additional cases detected per test, and screening in homeless shelters, with a corresponding MCS and MBS. Assume it is currently true that MBG/MCG < MBS/MCS. Understanding that MB decreases (increases) as quantity increases (decreases) and the reverse is true for MC, we can conclude that: a. too much screening is being done at homeless shelters relative to general screening. b. too much general screening is being done relative to screening at homeless shelters. c. the price of screening in homeless shelters is too high. d. the allocation is already optimal if there is a fixed budget because we can’t equate the ratios of marginal benefit and marginal cost. e. we can only make the allocation optimal if the prices can be changedCompare and contrast two quantitative tools for decision-making in conditions of certainty
- Empirical evidence suggests that state laws mandating health insurance coverage for alcoholism treatment leads to moral hazard on the part of the insured population. Given this information, what are you most likely to observe in a state that has passed such a law? A. Less use of alcohol treatment facilities B. Lower rates of drunk driving C. Higher rates of alcoholism D. Lower sales of alcoholIndicate whether the statement is true or false, and justify your answer. Aging shifts the marginal efficiency of investment in health curve inward.Insurance coverage has been shown to diminish the importance of time in the decision about how much medical care to seek and which providers to use. True OR False
- Traders from the faraway nation of Chplandia have brought infected goods to market in the capital of Pcoria. As a result, a new infectious disease called chpitis is spreading through the Pcorian population. Chpitis is not fatal but leaves victims severely disfigured for the remainder of their lives. Suppose that the Pcorian government enrolls all its citizens in the Universal Insurance Program which pays (with 5% coinsurance) for any treatment. So the ointment costs patients only $2,500 out of pocket. Will a 25-year-old chpitis victim still decide to get the ointment? What about a 60-year-old chpitis patient? What about a 69-year-old chpitis patient? Someone please help me. Thank you.Assume that people receiving intervention A live 5 years at quality of life of 0.8 and people receiving intervention B live 10 years at quality of life of 0.4. Assume further that the two intervention have equal costs. Compare the cost-effectiveness of these interventions relative to each other and discuss how that would be altered by inclusion of future costs for younger adults and older adults.In economic terms, moral hazard is the negative relationship between the out-of-pocket price of the physician visit and the quantity of the physician visits demanded in a given time period. a.True b.False
