Problem 1
Why would increased spending as a percentage of GDP on, say, household appliances or education in a particular economy be regarded as economically desirable? Why, then, is there so much concern about rising expenditures as a percentage of GDP on health care? LO24.1
Problem 3
Briefly describe the main features of Medicare and Medicaid, indicating how each is financed LO24.1
Problem 8
Briefly discuss the demand and supply factors that contribute to rising health costs. Specify how ( \(a\) ) asymmetric information, (b) fee-for-service payments, (c) defensive medicine, and (d) medical ethics might cause health care costs to rise \(L 024.4\)
Problem 10
Using the concepts in Chapter 7 's discussion of consumer behavior, explain how health care insurance results in an overallocation of resources to the health care industry. Use a demand and supply diagram to specify the resulting efficiency loss \(L\) O 24.4
Problem 11
How is the moral hazard problem relevant to the health care market? LO24.4
Problem 12
What is the rationale for exempting a firm's contribution to its workers' health insurance from taxation as worker income? What is the impact of this exemption on allocative efficiency in the health care industry? LO24.5
Problem 13
What are ( \(a\) ) preferred provider organizations and \((b)\) health maintenance organizations? In your answer, explain how each is designed to alleviate the overconsumption of health care \(L\) O24.5
Problem 14
What are health savings accounts (HSAs)? How might they reduce the overconsumption of health care resulting from traditional insurance? How might they introduce an element of price competition into the health care system? LO24.5
Problem 15
Why is the PPACA's attempt to extend insurance coverage to all Americans so costly? How does the PPACA attempt to obtain the funds needed to extend insurance coverage to all Americans? LO24.6
Problem 16
How does the PPACA attempt to ensure affordable health insurance for the poor? LO24.6
