In a standard economic analysis, setting a higher copayment rate per day of hospital care 1) Has the beneficial effect of discouraging unnecessarily long stays 2) Has the harmful effect of subjecting the consumer to more financial risk 3) Shifts some of the costs of care from the insurance premium to out-of-pocket payments 4) All of the above
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Q) In a standard economic analysis, setting a higher copayment rate per day of hospital care
1) Has the beneficial effect of discouraging unnecessarily long stays
2) Has the harmful effect of subjecting the consumer to more financial risk
3) Shifts some of the costs of care from the insurance premium to out-of-pocket payments
4) All of the above
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- Patient cost sharing is now a permanent feature in almost all health insurance contracts. The insurers introduce patient cost sharing with the goal to reduce adverse selection. reduce risk aversion. reduce consumer demand. increase consumers’ medication compliance. use those funds to guarantee full coverage of catastrophic events.The difference between retrospective versus prospective reimbursement is that: a. Prospective reimbursement is cost-based and payments are based on each healthcare services/goods done or given; retrospective reimbursements are based on set standards such as DRGs in the case of hospitalizations. b. Retrospective reimbursement is cost-based and payments are based on each healthcare services/goods done or given; prospective reimbursements are based on set standards such as DRGs in the case of hospitalizations. c. Both payment systems practically mean the same thing since it is a way to reimburse providers of health care services on the services they have already given to patients. d. None of the choices are correctConsider two treatments. Treatment 1 saves six years of quality adjusted life at a cost of $90,000. Treatment 2 saves three years of quality adjusted life at a cost of $60,000. Which treatment is preferred from a cost utility analysis perspective?
- In what sense is a cost-of-illness study a technique of economic evaluation? In what sense is it not? What is the primary motivation for doing a cost-of-illness study?Health insurance is normally seen as a good that is most valuable to sick people, since health expenditures are highest for the sick. Yet, in the basic insurance model discussed in this chapter, actuarially-fair health insurance is worth nothing to people who are certain to become sick (p = 1). Why does the standard model produce this result? How is this different from the way real-world insurance markets work?Individuals will prefer to fully insure against a potential adverse event if A. individuals are risk-loving and insurance is priced at an actuarially fair rate. B. individuals are risk-averse and insurance is priced at an actuarially fair rate. C. individuals are risk-loving and insurance is priced above the actuarially fair rate. D. individuals are risk-averse and insurance is priced above the actuarially fair rate.
- Most hospitals and nursing homes, and some insurance companies, do not aim to maximize profit but aim instead to maximize other more altruistic goals such as the number of covered lives. Group of answer choices True FalseSuppose in a given state's new insurance marketplace, with community rating and no restrictions on who can buy at the community rate, the risk pool (distribution of expected health costs) is as follows: 30% of eligible enrollees' expected health costs = $1,000 (per year)65% of eligible enrollees' expected health costs = $2,0005% of eligible enrollees' expected health costs = $10,000 What would the pure community premium rate for this risk pool be? (assume zero loading costs for simplicity in this problem)One of these is NOT TRUE about Cost-utility analysis: a. It measures outcomes in Quality Adjusted Life Years (QALY), and Disability Adjusted Life Years (DALYs) b. Cost is measured in monetary units c. The limitation of this analysis is that it is difficult to compare the interventions with differing natural effects d. It is used to make policy level decisions
- Since health care expenditures in many poor African countries such as Ghana average about $12 per person per year, there is no misallocation of resources. True FalseAs the newly appointed public health director in your county of residence, you are charged with increasing the healthcare utilization in your county. Document your high-level strategic plan by responding to the following: Summary: Who are the stakeholders in this situation?Analysis: What factors may impact the increase or decrease in health services supply and demand in your county?Recommendations: Provide an example of a supply and demand curve to describe the healthcare utilization in your county.Ensure that you integrate economic terms, frameworks, and models throughout your review.Compare and contrast two quantitative tools for decision-making in conditions of certainty