The twin, persistent problems of the U.S. health care industry are: O rapidly rising costs and unequal (lack of) access to health care. O declining quality of health care services and the duplication of specialized equipment at hospitals. O declining per capita spending on health care services, leading to perpetual reduction in health care jobs being created O the moral hazard problem, where people covered with health insurance no longer use the health care system and engage in no self-care or healthy behaviors

The twin, persistent problems of the U.S. health care industry are: O rapidly rising costs and unequal (lack of) access to health care. O declining quality of health care services and the duplication of specialized equipment at hospitals. O declining per capita spending on health care services, leading to perpetual reduction in health care jobs being created O the moral hazard problem, where people covered with health insurance no longer use the health care system and engage in no self-care or healthy behaviors

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter6: Population Health

Section: Chapter Questions

Problem 9QAP

See similar textbooks

Similar questions

Discuss the probable consequences of government regulation and market competition on the operation and performance of the health care industry. Question - Which of the following is not a basic question that must be answered as a result of scarcity? a. Who should decide the amount of money spent on medical goods and services?* b. Who should receive the medical goods and services that are produced? c. What mix of nonmedical and medical goods and services should be produced in the macroeconomy? d. What specific health care resources should be used to produce the chosen medical goods and services? e. What mix of medical goods and services should be produced in the health economy?
An important distinction in health insurance is between the list price (PL) and out-of-pocket price (PP) of a medical good or service. The list price is the official price that the provider charges the insurance company, while the out-of-pocket price is the price that the insurance customer faces. Sometimes, the out-of-pocket price depends on the list price. d. Now assume the consumer is part of a partial insurance plan with a coinsurance provision. Her insurance pays 50% of all medical expenses. Consider again the relationship between PL and PP and plot a coinsurance plan demand curve in PL - Q space. Label this curve D3. e. Finally, assume the consumer is part of a partial insurance plan with a copayment provision. Her insurance pays all expenses above and beyond her copayment of $25 for each unit of Q. Consider again the relationship between PL and PP and plot a copayment-plan demand curve in PL - Q space. Label this curve D4.
9) In which of the following countries does health insurance not pay for most preventive care procedures? A) Canada B) Japan C) the United Kingdom D) the United States 10) Substantial co-payments are typically not required as a part of the health care system in A) Canada and the United Kingdom. B) Japan and Canada. C) the United States and Japan. D) Japan and the United Kingdom. 11) The largest government-run health care system in the world, with 1.7 million employees, is the National Health Service (NHS) in the United Kingdom. The NHS receives its funding primarily from A) tariffs. B) the World Health Organization. C) income taxes. D) private businesses. 12) Typically, the ________ in a country, the higher the level of spending per person on health care. A) higher the level of income per person B) larger the population C) higher the level of income taxes D) lower the median age of the population 13) In ________, health care spending per person…
4 As an economist, please consider the extent to which the increasing enrollment in government-sponsored health care (Medicaid enrollment increased from 54.1 million persons in 2012 to 80.0 million in 2022) justifies bans on activities or products that are found to endanger public health. Consider, among other things, such economic concerns as distribution effects and moral hazard.
Economics 1. Does the demand for healthcare services vary in size with the affordable costs? 2.) Two sources of inefficiency that managed care attempts to address are moral hazard and demand inducement. True or false? a. True b. False 3.) Both moral hazard and demand inducement place us on a _____ medical system. a. flat-of-the-curve b. point of intersection c. tangent d. radius 4.) Managed care and managed competition are the same concept? True or false? a. True b False 5.) It is illegal for managed care organization to introduce competition among providers? True or false? a. True b False 6.) Government intervention arises from market failure and often includes which of the following? a competition generation b. tax policy c. competition generation and tax policy d. neither competition generation nor tax policy
only typed answer Suppose that the market demand for medical care is summarized by the demand function: Qd = 100-2p and the market supply is summarized by the supply function: Qs= =20+2p (1) Calculate the equilibrium quantity and price, assuming no health insurance is available. (2) Suppose that health insurance is made available that provides for a 20 percent coinsurance rate. Calculate the new equilibrium price and quantity. (Hint: How does the demand curve shift?) (3) Calculate the deadweight loss due to this insurance.
The biggest difference between Beveridge- and Bismarck-style health systems is: a. Beveridge countries all speak English as their main language b. Bismarck countries do not allow for private insurance c. Beveridge countries rank equity above other values and goals d. Bismarck countries tightly regulate private insurance 2. The biggest difference between the United States and Beveridge OR Bismarck counties’ health systems is: a. The US has longer life expectancy for higher income people b. The US permits/tolerates tens of millions of its citizens to be uninsured c. The US does more health technology assessment before utilization than other countries d. The US enjoys spending a higher percentage of its GDP on health care, it is a voluntary choice that reflects preferences for health care over other goods and services
Faustian health economics. Consider Figure 11.10, which shows the locus of feasible contracts for the population of the nation of Pcoria. In which corner of this diagram (northeast, southeast, northwest, or southwest) is utility highest for consumers? What prevents insurance companies from offering contracts in this corner? On your own version of Figure 11.10, plot new points to represent where the market would be under (i) a nationally mandated full insurance policy and (ii) an insurance ban. (Please draw a diagram) Would a nationally mandated full insurance policy be optimal for Pcoria? What about an insurance ban? Suppose the devil approaches the newly elected president of Pcoria with an unusual bargain. He offers to magically eliminate moral hazard, but in return, Pcoria must forbid contracts that are more than half full. On a new version of Figure 11.10, draw a new locus of the contracts that would be feasible if the president takes the devil's bargain. Should the president take…
What provision of federal law makes employer-based health insurance even more attractive to most EMPLOYEES who receive it than just the value of the premium? O Insured employees can take a tax deduction for the entire amount paid to doctors for the employee's treatment even if much of the cost was paid by insurance. Employer-based health insurance offers much better coverage than other types of insurance Employer-based health insurance offers lower copays and deductibles than other types of insurance The value of health insurance paid by an employer is not taxable income for the employee
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.
1. What assumptions of the perfectly competitive marketplace are violated in medical markets? How does each affect equilibrium price and quantity? 2. One of the significant problems in medical care markets may be the informationproblem. Asymmetric information has led to two important defects in the medicalmarketplace. What are they? How do these defects affect medical markets? 3. Explain how market failure can be used to justify government intervention in medical care markets.4. What are the three areas objectively used to evaluate the effectiveness of medical care delivery? Why are they important?
Suppose the funding agency switches both physicians' and hospitals' prospective payment to a system of retrospective payment, i.e., from salary to fee-for-service for physicians, and from global budget payment to activity-based funding for hospitals. Clearly explain each of these terms and how these changes will impact the utilization of physician and hospital services.