The following question is based on the C.D. Howe Institute commentary by ke Blomqvist, which we started reading in Class 8 (the pdf file can be found in the Class 8 module in Brightspace), in particular on the subsection titled "How Canada Could Transition to an Equitable Multi-payer Model of Managed Competition". (a) Which configuration of public and private roles in health care finance does the current Canadian system correspond to? Explain. (4 points) (b) In the subsection titled "How Canada Could Transition to an Equitable Multi-Payer Model of Managed Competition", Blomqvist writes: "Every resident would have a choice of two options: stay in their existing provincial plan, or receive a voucher that would be used toward paying all or part of the premium for an approved substitute plan." For simplicity, assume that such a model would allow users to pay only part of the premium; that is, even with a voucher, they would still have to pay part of the premium out of pocket. Note that the model suggested by Blomqvist combines two of the configurations of public and private roles discussed in class. Consider specifically health care financing for physician services. Identify which two configurations Blomqvist's suggestion corresponds to and carefully explain your answer. (8 points) (c) Again, consider financing for physician services. What is the difference between existing financing under the public provincial plan and the voucher system, in terms of efficiency? Make sure to discuss efficiency with respect to health care financing itself, with respect to the market for physician services, and with respect to the broader economy. Explain. (12 points) (d) Again, consider financing for physician services. Identify one difference between existing financing under the public provincial plan and the voucher system, in terms of equity. Explain. (4 points) The following question is based on the C.D. Howe Institute commentary by ke Blomqvist, which we started reading in Class 8 (the pdf file can be found in the Class 8 module in Brightspace), in particular on the subsection titled "How Canada Could Transition to an Equitable Multi-payer Model of Managed Competition". (a) Which configuration of public and private roles in health care finance does the current Canadian system correspond to? Explain. (4 points) (b) In the subsection titled "How Canada Could Transition to an Equitable Multi-Payer Model of Managed Competition", Blomqvist writes: "Every resident would have a choice of two options: stay in their existing provincial plan, or receive a voucher that would be used toward paying all or part of the premium for an approved substitute plan." For simplicity, assume that such a model would allow users to pay only part of the premium; that is, even with a voucher, they would still have to pay part of the premium out of pocket. Note that the model suggested by Blomqvist combines two of the configurations of public and private roles discussed in class. Consider specifically health care financing for physician services. Identify which two configurations Blomqvist's suggestion corresponds to and carefully explain your answer. (8 points) (c) Again, consider financing for physician services. What is the difference between existing financing under the public provincial plan and the voucher system, in terms of efficiency? Make sure to discuss efficiency with respect to health care financing itself, with respect to the market for physician services, and with respect to the broader economy. Explain. (12 points) (d) Again, consider financing for physician services. Identify one difference between existing financing under the public provincial plan and the voucher system, in terms of equity. Explain. (4 points)
