Hello, This document that I have doesn't have any questions on it Can you answer them I am to use the get free section but it's not working I can't upload the document on here But here is the document 1 On one hands, prospective payment system (PPS) may generate incentives to unnecessary health care to maximize profit On the other hands, PPS would generate incentives to provide than optimal care to maximize profit a reduce less b reduce more c increase less d increase more 2 Increased HMO competition in an insurance market would the prices of non HMO care because HMOs would skim the patients from other insurers a drive down healthiest b drive down sickest c drive up healthiest d drive up sickest 3 The medical arms race literature suggests that hospitals might compete on the basis of and this may health care expenditures a price decrease b price increase c quality decrease d quality increase 4 Without government intervention, markets tend to air pollution, and total cost of air pollution is than private cost due to negative externality a under produce lower b over produce lower c under produce higher d over produce higher II Health insurance provision (5 points each 15 points total) 5 Suppose that a small firm's employee makeup is 50 married and 50 single Annual total compensation per employee is $50,000, and the firm offers a single coverage health insurance plan worth $5,000 per year The firm currently does not offer a family coverage plan If only the single workers purchase health insurance, wage and non wage compensation would be and , respectively, for single employees a 45,000 5,000 b 47,500 0 c 47,500 2,500 d 47,500 5,000 6 Given the scenario in question 5, married workers who declined the health insurance plan would earn and for monetary wage and non monetary compensation, respectively a 45,000 5,000 b 47,500 0 c 47,500 2,500 d 47,500 5,000 7 Assume that the government mandates that all businesses must offer both a family coverage plan and a single coverage plan so that married people (or two worker households) have more insurance plan purchase options The government also mandates that the employer must subsidize at least half of insurance premium for both types of plans Given that, the firm would have an incentive to a Hire single employees rather than married employees b Replace labor with capital c Provide no health insurance at all d (a), (b), and (c) are correct III Tax treatment policy for health insurance premiums (5 points each 15 points total) 8 Greg and David earn $800 and $1000 per week, respectively Greg purchases insurance with average coverage and pays $80 weekly for his insurance premium On the other hand, David pays $100 per week and purchases a more generous insurance plan Assume that income tax rate is 20 for both, and there is no income tax treatment for insurance premium Given that, disposable income is for Greg and for David a 560 700 b 560 720 c 576 700 d 576 720 9 Assume that the government has introduced a tax treatment policy for health insurance premiums that relieves Greg and David from having to pay income tax on their insurance premiums Given that the weekly income and income tax rate remain the same, disposable income is now for Greg and for David a 560 700 b 560 720 c 576 700 d 576 720 10 When we compare disposable incomes in questions 8 and 9, we can tell that an individual with income benefits more from this tax policy because his increase in disposable income is a low lower b low higher c high lower d high higher IV Voting paradox (5 points each 20 points total) Voter's utility associated with health care expenditure David U($300M) U($200M) U($100M) Utility with health care expenditure Tina U($200M) U($100M) U($300M) Greg U($100M) U($200M) U($300M) Health care expenditure $100M$200M$300M 11 In , suppose that there are only three committee members, David, Greg, and Tina, on the Omaha department of health services committee There is no chair Each committee member has a different preference on annual health care expenditure, which is public information If committee members make a second best choice under the majority voting rule, the health care expenditure will a be $100M at equilibrium b be $200M at equilibrium c be $300M at equilibrium d not exist Voter's utility associated with health care expenditure David U($300M) U($200M) U($100M) Utility with health care expenditure Greg U($100M) U($300M) U($200M) Tina U($200M) U($100M) U($300M) Health care expenditure $100M$200M$300M 12 Suppose that David became a committee chair He wants to maximize the health care expenditure budget To do so, he brought Greg to his party and now Greg announced that his preference has changed as shown in According to the majority voting rule, the equilibrium health care expenditure would a be $100M b be $200M c be $300M d not exist 13 In , David, the chair, can achieve his goal by making the committee members a first vote on $100M versus $200M, then vote on the first round winner and $300M b first vote on $100M versus $300M, then vote on the first round winner and $200M c first vote on $200M versus $300M, then vote on the first round winner and $100M d first vote on $100M versus $300M, then vote on the first round winner and $300M 14 In , the mayor is afraid that the health care expenditure is unnecessarily high and appointed Tina as the new committee chair Tina's goal is to reverse the annual budget to the equilibrium level in Question 11 Unfortunately, Greg insists that his true preference is as shown in as he is worried about his ethical reputation To achieve her goal, Tina should make the committee members a first vote on $100M versus $200M, then vote on the first round winner and $300M b first vote on $100M versus $300M, then vote on the first round winner and $200M c first vote on $200M versus $300M, then vote on the first round winner and $100M d first vote on $100M versus $300M, then vote on the first round winner and $300M V Hospital advertisement (5 points each 10 points total) Hospital B Advertise Don't advertise Hospital A Advertise (0 5, 0 5) (1 5, 0 5) Don't advertise ( 0 5, 1 5) (1, 1) Hospital B Advertise Don't advertise Hospital A Advertise ( 0 1, 0 1) (1 1, 0 5) Don't advertise ( 0 5, 1 1) (1, 1) 15 Assume that there are two major hospitals in Omaha Given that the payoff matrix with and without TV advertisement is shown in , the dominant strategy at equilibrium is a hospital B advertises and Hospital A does not b hospital A advertises and Hospital B does not c both advertise d neither advertises 16 Now TV advertising becomes even more costly, and the new payoff is as shown in In the new equilibrium, the hospital may have incentive to a increase price to make up the profit loss due to increased advertisement fees b stop TV advertising to minimize profit loss c collude to adjust the amount of TV advertisements d (a) and (c) are correct VI Changes in Medicaid reimburse rate (5 points each 20 points total) Price, Medicaid reimbursement rate, and number of inpatients Number of admitted patients Demand MR Capacity 800 0400600700800 AC MC 10 Price P 2 40 P 1 35 P 0 30 R 2 25 R 1 15 17 Ms Baker runs a monopoly hospital in a neighborhood where 20 percent of residents are covered by Medicaid Average cost and marginal cost is the same at $10 either she admits private patients or Medicaid patients However, currently Ms Baker admits private patients only To maximize her profit, she admits patients at price , which provide profit at a 400 $40 $12,000 b 600 $35 $15,000 c 700 $30 $14,000 d 800 $10 $0 18 The state government is concerned that the Medicaid patients travel to the other city to access hospital care and increased the Medicaid reimbursement rate from R 1 to R 2 Now Ms Baker decided to admit both private and Medicaid patients Given that R 2 25, she admits private patients at price as marginal benefit of private patients is than Medicaid reimbursement rate a 400 $30 lower b 400 $40 greater c 600 $35 lower d 600 $40 greater 19 During the last a few years, the state government has accumulated debts due to high Medicaid reimbursement rates However, the government is aware that median voters do not like that the government increases tax to support Medicaid patients As a result, the government reduced the Medicaid reimbursement rate to R 1 15 Ms Baker still admits the Medicaid patients, but now she admits Medicaid patients, with Medicaid patients profit being a 200 $1,000 b 200 $4,500 c 300 $1,000 d 300 $4,500 20 Given that there is excess demand among Medicaid patients, the government may have incentives to a reduce property tax for non profit hospital b encourage donation to charity care c subsidize travel fee for the Medicaid patients d (a), (b), and (c) are correct

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Hello, This document that I have doesn't have any questions on it. Can you answer them? I am to use the get free section but

Hello,

This document that I have doesn't have any questions on it. Can you answer them? I am to use the get free section but it's not working. I can't upload the document on here. But here is the document.

1. On one hands, prospective payment system (PPS) may generate incentives to ____ unnecessary health care to maximize profit. On the other hands, PPS would generate incentives to provide ____ than optimal care to maximize profit.

a. reduce; less

b. reduce; more

c. increase; less

d. increase; more

2. Increased HMO competition in an insurance market would _____the prices of non-HMO care because HMOs would skim the _____ patients from other insurers.

a. drive down; healthiest

b. drive down; sickest

c. drive up; healthiest

d. drive up; sickest

3.The "medical arms race" literature suggests that hospitals might compete on the basis of ____ and this may ____ health care expenditures.

a. price; decrease

b. price; increase

c. quality; decrease

d. quality; increase

4. Without government intervention, markets tend to _______ air pollution, and total cost of air pollution is ____ than private cost due to negative externality.

a. under-produce; lower

b. over-produce; lower

c. under-produce; higher

d. over-produce; higher

II. Health insurance provision (5 points each; 15 points total)

5. Suppose that a small firm's employee makeup is 50% married and 50% single. Annual total compensation per employee is $50,000, and the firm offers a single coverage health insurance plan worth $5,000 per year. The firm currently does not offer a family coverage plan. If only the single workers purchase health insurance, wage and non-wage compensation would be ___ and ____, respectively, for single employees.

a. 45,000; 5,000

b. 47,500; 0

c. 47,500; 2,500

d. 47,500; 5,000

6. Given the scenario in question 5, married workers who declined the health insurance plan would earn ______ and _____ for monetary wage and non-monetary compensation, respectively.

a. 45,000; 5,000

b. 47,500; 0

c. 47,500; 2,500

d. 47,500; 5,000

7. Assume that the government mandates that all businesses must offer both a family coverage plan and a single coverage plan so that married people (or two-worker households) have more insurance plan purchase options. The government also mandates that the employer must subsidize at least half of insurance premium for both types of plans. Given that, the firm would have an incentive to:

a. Hire single employees rather than married employees.

b. Replace labor with capital.

c. Provide no health insurance at all.

d. (a), (b), and (c) are correct.

III. Tax treatment policy for health insurance premiums (5 points each; 15 points total)

8. Greg and David earn $800 and $1000 per week, respectively. Greg purchases insurance with average coverage and pays $80 weekly for his insurance premium. On the other hand, David pays $100 per week and purchases a more generous insurance plan. Assume that income tax rate is 20% for both, and there is no income tax treatment for insurance premium. Given that, disposable income is _____ for Greg and _____ for David.

a. 560; 700

b. 560; 720

c. 576; 700

d. 576; 720

9. Assume that the government has introduced a tax treatment policy for health insurance premiums that relieves Greg and David from having to pay income tax on their insurance premiums. Given that the weekly income and income tax rate remain the same, disposable income is now ______ for Greg and _____ for David.

a. 560; 700

b. 560; 720

c. 576; 700

d. 576; 720

10. When we compare disposable incomes in questions 8 and 9, we can tell that an individual with ____ income benefits more from this tax policy because his increase in disposable income is _______.

a. low; lower

b. low; higher

c. high; lower

d. high; higher

IV. Voting paradox (5 points each; 20 points total)

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