c) Suppose the coinsurance rate (C)) under Jess's health insurance plan is 30%, and each PT visit costs $35. Calculate the OOP price (i.e. Po) Jax would pay for each visit. (3pts) Show work below, and submit final answer to Blackboard d) Suppose Jess switched to a new insurance plan the next year with coinsurance C,= 10%. [I] Sketch the impact to the DN and DE curves (if any) on the graph above, and [2] State whether the number of visits the new insurance plan would be more or fewer than the original equilibrium Q of 10 visits. (6pts) per year under Sketch [1] o the graph, and submit your answer for [2/ in Blackboard 2. Cost Evaluation Methods. New medical technologies improve patient outcomes but tend to contribute to rising health care costs. Existing legislation requires public payers to cover new technology if it is "reasonable and necessary," without consideration of costs. You are hired by Nationwide Children's Hospital to assess a new therapeutic treatment for pediatric cancer. (TOTAL: 16pts) 11 Table 1. Key Information Collected for Cost-Effectiveness and Cost-Utility Analyses Health-Utility Treatment Option Cost Life-Years Gained QALY Index Current Surgical Treatment $180,000 13 0.60 New Surgical Treatment $240,000 14 0.90 a) Calculate the Quality-Adjusted Life Years (QALYS) for each treatment option. (4pts) Show work below, and submit final answers on Blackboard. b) Use cost-effectiveness analysis to calculate the cost per life-year of adopting the new treatment (Hint: use the ICER). Then, state whether you would recommend to "Adopt" or "Not Adopt" the new treatment, and provide a brief explanation why. (6pts) Show work below, and submit final answers on Blackboard.