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the economics of health and health care
Questions and Answers of
The Economics Of Health And Health Care
1.8 (Advanced) Individual or class project. For students with computing and statistical skills, the MEPS database is available at www.meps.ahrq.gov/ meps web/ . For an individual or class project,
1.7 Suppose that the “greasy food” sector of the economy did not offer health insurance before the passage of the ACA, and “greasy food” workers were not interested in health insurance.a Draw
1.6 Consider two households. They have the same incomes and face the same prices. Household H tends to be healthy and household U tends to be unhealthy. Suppose that two insurance plans are
1.5 Consider Figure 24.3, where health insurance and other goods are measured in dollars spent. Suppose Adam spends no money on health insurance, Steve spends 6% of his income on health insurance,
1.4 Consider a diagram like Figure 24.2 where states are offered the opportunity to buy into Medicaid under the ACA for a 9:1 match.a Mark an initial level of expenditures if the state is spending
1.3 Suppose that a monopolist faced the following demand curve for its goods. Its marginal cost per unit of production is 100, and it faces no fixed costs.a Calculate the profit- maximizing output
1.2 Suppose that a purely competitive firm offers no health insurance to its employees. Let an employer mandate for health insurance to be enacted. If this causes the firm’s marginal costs to
1.1 Suppose that a monopolistic firm faces a downward- sloping demand curve for its product and offers no health insurance to its employees. Let an employer mandate for health insurance be enacted.
1.8 Assume that a brilliant health economist has developed a plan that will greatly improve the efficiency of the US health care system by putting everyone’s medical records on a card with a
1.7 Improving the quality of health care has become a national priority. Discuss the relative merits of using government regulation versus market forces in improving quality.
1.6 Compare the ACA, passed in 2010, with the Massachusetts health plan, adopted in 2006(use the Internet to obtain more details than we have provided in this chapter). Be sure to note the
1.5 What are Health Savings Accounts (HSAs)? Why might HSAs decrease health care spending?What are some problems with the HSA concept? Consider an enrollee in a CDHP with a high- deductible HSA who
1.4 What are the major competitive strategies proposed by economists? How, for example, would elimination of the tax subsidy for employer- provided health insurance reduce spending on health care?
1.3 How could a single- insurer health insurance system provide additional cost savings over a multiple- insurer system like that in the United States?
1.2 If the aggregate labor supply curve were highly responsive to increased wages (elastic) instead of very inelastic as we have stated, how would an employer- mandated health insurance plan affect
1.1 Would individual mandates for health insurance be more or less burdensome to the poor than employer mandates? Would lower- income groups be wise to favor one plan over the other?
1.• Create models that describe the benefits and constraints of Medicaid expansion under the ACA.
1.• Describe the “three-l egged stool” model that explains the key points of the Affordable Care Act (ACA).
1.• Define the issues involved in evaluating health care quality.
1.• Identify the administrative costs in enrolling patients, collecting information, and coordinating care, and the goals of reducing those costs.
1.• Distinguish between employer and individual mandates to provide or acquire health insurance.
1.• Determine the factors that influence the costs of more comprehensive coverage, including universal coverage.
1.• Discuss the resource costs of health reforms in terms of “opportunity costs.”
1.8 (Advanced) Individual or class project. For students with computing and statistical skills, the MEPS database is available at www.meps.ahrq.gov/ meps web/ . For an individual or class project,
1.7 Suppose that the “greasy food” sector of the economy did not offer health insurance before the passage of the ACA, and “greasy food” workers were not interested in health insurance.a Draw
1.6 Consider two households. They have the same incomes and face the same prices. Household H tends to be healthy and household U tends to be unhealthy. Suppose that two insurance plans are
1.5 Consider Figure 24.3, where health insurance and other goods are measured in dollars spent. Suppose Adam spends no money on health insurance, Steve spends 6% of his income on health insurance,
1.4 Consider a diagram like Figure 24.2 where states are offered the opportunity to buy into Medicaid under the ACA for a 9:1 match.a Mark an initial level of expenditures if the state is spending
1.3 Suppose that a monopolist faced the following demand curve for its goods. Its marginal cost per unit of production is 100, and it faces no fixed costs.a Calculate the profit- maximizing output
1.2 Suppose that a purely competitive firm offers no health insurance to its employees. Let an employer mandate for health insurance to be enacted. If this causes the firm’s marginal costs to
1.1 Suppose that a monopolistic firm faces a downward- sloping demand curve for its product and offers no health insurance to its employees. Let an employer mandate for health insurance be enacted.
1.8 Assume that a brilliant health economist has developed a plan that will greatly improve the efficiency of the US health care system by putting everyone’s medical records on a card with a
1.7 Improving the quality of health care has become a national priority. Discuss the relative merits of using government regulation versus market forces in improving quality.
1.6 Compare the ACA, passed in 2010, with the Massachusetts health plan, adopted in 2006(use the Internet to obtain more details than we have provided in this chapter). Be sure to note the
1.5 What are Health Savings Accounts (HSAs)? Why might HSAs decrease health care spending?What are some problems with the HSA concept? Consider an enrollee in a CDHP with a high- deductible HSA who
1.4 What are the major competitive strategies proposed by economists? How, for example, would elimination of the tax subsidy for employer- provided health insurance reduce spending on health care?
1.3 How could a single- insurer health insurance system provide additional cost savings over a multiple- insurer system like that in the United States?
1.2 If the aggregate labor supply curve were highly responsive to increased wages (elastic) instead of very inelastic as we have stated, how would an employer- mandated health insurance plan affect
1.1 Would individual mandates for health insurance be more or less burdensome to the poor than employer mandates? Would lower- income groups be wise to favor one plan over the other?
1.• Create models that describe the benefits and constraints of Medicaid expansion under the ACA.
1.• Describe the “three-l egged stool” model that explains the key points of the Affordable Care Act (ACA).
1.• Define the issues involved in evaluating health care quality.
1.• Identify the administrative costs in enrolling patients, collecting information, and coordinating care, and the goals of reducing those costs.
1.• Distinguish between employer and individual mandates to provide or acquire health insurance.
1.• Determine the factors that influence the costs of more comprehensive coverage, including universal coverage.
1.• Discuss the resource costs of health reforms in terms of “opportunity costs.”
1.6 Figure 23.3 shows various types of national health insurance systems.a Compare the total expenditures in panels A and B. Which set of expenditures is larger?What determines which will be larger?
1.5 From the data in Table 23.2, estimate a regression equation of the following form: Log(Life expectancy at birth) = c + d log (Expenditures per capita). What does your resulting equation say about
1.4 For more advanced students, Table 23.2 provides data for at least rudimentary estimates of income elasticity of health care expenditures. Estimate a regression equation of the following form:Log
1.3 Define price elasticity of health care demand.a Suppose the price elasticity of health services is – 0.4. What will happen to the share of health care expenditures, given a 10% decrease in
1.2 Define income elasticity of health care demand.a If income increases by 1% and the income elasticity of health care demand is + 0.75, does the share of income going to health care increase or
1.1 Consider the allocation of services in the United Kingdom’s NHS, as noted in Figure 23.2.If the government raises the administered price up from P*, trace what would happen to expenditures in
1.12 The OECD provides some of the best data available for comparative international work. Its Website is www.oecd.org. Use the OECD data to examine the health care system of Mexico along the
1.11 What ideas discussed in this chapter would be suitable to recommend to a country just now revising its health system? To pursue equity, that is, wide coverage? To pursue cost containment, that
1.10 Speculate about the level of technology available across countries. Do you think that better health care is available in the United States than in Canada? Do international health indices suggest
1.9 Do countries with more comprehensive national programs for the provision of health care tend to have lower average costs than the United States? Do they have lower rates of growth in costs?
1.8 Many economists feel that markets are efficient unless characteristics are present that lead to market failure. What sorts of market failure in the health economy can be used to justify adoption
1.7 As noted in Table 23.8, patient access and costs vary among a number of measures. Are these measures useful indicators of the performance of health care systems? Could you think of any others?
1.6 Distinguish between a national health insurance system and a national health service.Provide examples of each. What kind of a system does the United States have?
1.5 It is important to compare items under the rubric of “all else equal.” What crucial factors must be adjusted when comparing health expenditures across countries?
1.4 Suppose that the price of health care services rises and the quantity demanded falls. Under what conditions might the health care share of GDP fall? Rise?
1.3 Create a table comparing the British, Chinese, and Canadian health care systems with respect to financing, availability, and costs of care. How do they compare with the system in the United
1.2 In countries in which there is nonprice rationing for care, waiting time costs may be substantial. How could you measure the economic costs of the waiting time?
1.1 Discuss the factors that may lead one nation to spend more per person on health care than another nation. What are the implications of finding health care to be income elastic in cross- national
1.• Describe the health care system in Canada, the benefit structure it offers, differences across provinces, and the challenges it faces
1.• Describe the health care system in China, including the insurance and payment structure at the urban and provincial levels, and the challenges it faces
1.• Describe the NHS in the United Kingdom, its benefit and payment structure, and the challenges it faces
1.• Describe the different types of health care systems in developed and developing countries
1.5 Consider the analysis described in Figure 22.6. Tom and Dick each earn $25,000 per year.Tom has a spouse and two children, and Dick is unmarried. Health insurance and other goods trade off dollar
1.4 Consider a population of 1,000 families: 200 had Medicaid insurance, 700 had some other type of insurance, and 100 were uninsured. Suppose now that Medicaid broadens eligibility rules that would
1.3 Consider Currie’s 2006 discussion of take- up of social programs, where the x- axis is program enrollment and the y- axis refers to monetary costs and benefits.a If we measure the number of
1.2 Figure 22.3 describes the Medicare Part D prescription drug benefit. Look at the Web page https:// www.medic are.gov/ plan- comp are/ #/ ?year= 2023&lang= en in your area and determine the
1.1 Calculate the average tax rate for Social Security annual wages of $25,000, $50,000,$75,000, $100,000, $150,000, and $250,000. Do the same for Medicare. (Hint: You may choose to do each
1.12 Are elderly people provided the right amount of health care under current US policies?Contrast your answer for the United States to other countries with which you are familiar.
1.11 Reductions in federal stimulus plans and decreasing state resources have affected the Medicaid program. Discuss the impact on Medicaid and state responses in the state where you live or go to
1.10 The ACA has engendered particular debate between proponents and opponents. Why do you think this is the case?
1.9 For students in the United States, compare Medicaid coverage in your state with coverage afforded to recipients in a neighboring state. Are they the same? If not, why do you think that they
1.8 Historically in the United States, what groups have supported social insurance for health care, and what groups have opposed it? Why do you think this is the case?
1.7 What are some possible reasons that other industrially advanced countries have far more comprehensive social insurance programs for health care than does the United States?
1.6 Does access to health care provided through social insurance programs affect health status?Discuss the evidence.
1.5 Describe how Medicare has affected access to care for the elderly.
1.4 What factors contributed to the historical growth in Medicare spending?
1.3 What are the similarities between Medicare and Medicaid? What are the differences?
1.2 Of the five types of social insurance programs described, which types characterize Medicare?Which types describe Medicaid?
1.1 In what ways does social insurance differ from private insurance?
1.• Discuss the relationship between public health insurance programs and health, particularly those of Medicare and Medicaid
1.• Describe the Medicare and Medicaid programs, their components, and their composition of beneficiaries
1.• Define the role and describe the features of the Affordable Care Act (ACA)
1.• Define social entitlement categories and describe the structure of social programs
1.8 Here is a complex yardstick problem. A monopoly hospital faces the following demand curve, q = 400 − 10p and the following marginal cost (with no fixed costs), c = 22.a Calculate the profit-
1.7 Suppose that Hospitals A through Ε have the following marginal costs for a given procedure:Hospital A— $2,000 Hospital B— $2,200 Hospital C— $1,800 Hospital D— $2,700 Hospital E—
1.6 In Figure 21.1, suppose the demand for the good was summarized by the equations:P = 100 − 0.5Q MR = 100 − Q and that the marginal cost equals the average costs at $10 per unit.a Calculate the
1.5 Take a commodity, such as cigarettes or “junk food,” associated with negative externalities.Assume that the marginal private cost of production and the marginal external cost per unit are
1.4 Assume a positively sloped, short- run supply curve in Figure 21.3 and a constant $5 per unit marginal external benefit. Show what happens with a $5 subsidy given to producers. Who gains the
1.3 Suppose that the public good in Figure 21.2 is associated with increasing costs of production(this would occur if AC is positively sloped). Will the two individuals be able to fund the optimal
1.2 Suppose that Abe’s brother Gabe (with the same preferences as Abe), and Betty’s sister Hetty (with the same preferences as Betty), move into the neighborhood. Using the graph in Figure 21.2,
1.1 What is meant by the welfare loss of monopoly? Who bears this loss? Determine the regulated price in Figure 21.1 that would eliminate the welfare loss. Why would it be difficult in practice to
1.13 Does the Medicare PPS payment under DRGs reduce costs? Discuss.
1.12 What is the Medicare PPS program under DRGs? How has the Medicare PPS payment under DRGs affected hospital practices? Length of stay? Quality of care? Financial condition?
1.11 Under Shleifer’s theory of yardstick competition, why does the firm have an incentive to reduce its costs? If all firms respond by reducing their costs, will the payment rate also subsequently
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