8.2: How would the Tiebout hypothesis affect you as a Medicaid recipient? 8.3 : If Medicaid benefits are based on income, so that as a person makes more money, their benefits decline gradually rather than abruptly at the poverty threshold, then individuals will have an incentive to take a slightly higher paying job without fearing the loss of Medicaid coverage. Should the Medicaid benefit decrease equal the pay increase, be less than the pay increase, or be greater than the pay increase? Base your answer on the decision to take a pay raise and lose some Medicaid benefits. 9.2: Refer to Figure 9.5 2019 25th percentile 2020 1/4 of of scores Threshold 2021 threshold above score score threshold 2022 Figure 9.5: Physicians will be given bonus payments or face-fee reductions based on performance. Source: Filename Fig9p5.jpg & PartBPays.xisx Under the MIPS program, what is the maximum penalty for a physician in 2020 who falls short of the threshold performance score? On Fri, Sep 9, 2022 at 10:30 PM Hannah Green wrote: 6.2: Refer to Figure 6.4; Assume the demand is given by the equation P = 50 - 2 x Q, and supply is given by the equation 10 + 2 x Q. Price Supply Deadweight loss V P W U P1 Demand Q2 Q Q1 Quantity Figure 6.4: A price ceiling sets the legal selling price of the commodity at a level that is below the natural competitive equilibrium price, which is P in this diagram. (P > P1) 6.2 a.What is the competitive equilibrium price? 6.2 b. Assume price is regulated and set at $4 lower than your answer above, What quantity is supplied at this price and what quantity is demanded at this price? 6.2 c. At the regulated price of $4 lower than the competitive equilibrium price, what is the dead weight loss amount? 7.1 : In 2016, Centers for Medicare & Medicaid Services (CMS) proposed new advantage plan rates to insurers, which represented a 1.35% increase for 2017. These average increases were considered "modest but stable growth" for insurers, and came with the consolation from CMS that insurers would actually see increases of about 3.55% as they deliver and bill for more intense services. Medicare is considered a major growth engine for the insurance industry as more baby boomers reach age 65. There are currently about 18.2 million people in MA plans with annual enrollment growing at 5%. The rates that Medicare pays to insurers are capitated, but they include a lot of regulatory tweaks that can push payments up or down for particular companies depending on their mix of business. For example, one proposal is to increase payments to insurers who have a large number of low-income enrollees that also qualify for Medicaid. Companies who do not have any poor enrollees may see their payments from Medicare decline. 7.1 a. Which hallmark of regulatory capture is evident in the tone of CMS and its proposed rate increases? Assume that United Healthcare is in favor of the proposed incentives to sell advantage plans to poorer enrollees, and that ABC insurance is opposed. Which hallmark of regulatory capture is United Healthcare exhibiting? 7.2: Apply what you know about the cost of generic drugs versus brand name drugs in general. What sort of perverse incentives does Part D create for patients who are able to choose between generic and brand name drugs? between generic and brand name drugs? 7.3: A person may sign up for Part D insurance as soon as they reach age 65 and before the closing of their enrollment window, which is about 90 days after their birthday. If they choose not to sign up for Part D as soon as they are eligible and then at a later date decide to enroll in Part D, they will face a penalty fee, which is added to their monthly Part D premium. For every month, they delayed enrolling in Part D from when they were eligible, a 1% penalty is added to the base premium. In 2019, the base premium was $33.19 per month for Part D insurance. What market failure does this penalty address? 7.4 : The addition of add-on payments to the proposed physician fee schedule from Medicare will have what effect on physician behavior