2. A consumer’s demand for a medical service is: Q = 100 - ?? where ?? is the out-of-pocket price she/he actually faces. She/he is considering four different insurance options: uninsurance, full insurance, a 50% coinsurance plan, and a copayment plan with a $25 copay. a. Assume this service has a list price of ??= $70. Calculate Q under each insurance plan. b. Calculate the amount of social loss under each insurance plan.
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2. A consumer’s demand for a medical service is: Q = 100 - ?? where ?? is the out-of-pocket price she/he actually faces. She/he is considering four different insurance options: uninsurance, full insurance, a 50% coinsurance plan, and a copayment plan with a $25 copay.
a. Assume this service has a list price of ??= $70. Calculate Q under each insurance plan.
b. Calculate the amount of social loss under each insurance plan.
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- 6. The demand for the doctor's visits, Q, is the following: Q= 5 – 0.04P. The market price of a visit, equals the MC of $100. What is the equilibrium number of visits? What if the consumer purchases full-coverage (no coinsurance) health insurance and the demand stays the same. How many doctor visits would the patient consume? Calculate the deadweight loss or moral hazard cost as a result of the insurance coverage. Remember, DWL is there if units for which MB>MC are not produced, or if units for which MC>MB are produced.1. More fun with cost-sharing. (You may want to review Exercise 15 before proceeding, although it is not necessary.) A consumer’s demand for a medical service is Q = 100 − PP where PP is the out-of-pocket price she actually faces. She is considering four different insurance options: uninsurance, full insurance, a 50% coinsurance plan, and a copayment plan with a $25 copay. a. Assume this service has a list price of PL = $70. Calculate Q under each insurance plan. b. Calculate the amount of social loss under a copayment plan with a $25 copay.1. An individual has a health insurance plan with a deductible of $1200 and a coinsurance rate of 50%. Their demand curve is Q=20-(P/10), and the equilibrium market price of medical care is $100 per unit. What quantity of medical care would the individual choose to consume? 2. Suppose that consumers are all risk neutral and so they do not purchase health insurance. The equilibrium price of a doctor visit is $30, the supply of doctor visits is perfectly elastic, and the aggregate demand for doctor visits is given by Q=200-5*P. Calculate the effect that universal perfect health insurance (that is, coinsurance rate=0) would have on social welfare, measured as the sum of consumer surplus plus producer surplus. 3. Consider a version of the Akerlof model in which neither buyers nor sellers observe car quality (though somehow – please suspend your disbelief – both buyers and sellers enjoy higher utility from higher quality cars). For this question, please assume that both buyers…
- How can I Analyze the effect of healthcare reform on the healthcare consumer who uses the Insurance company launching a new medical product for the health insurance exchangeHealth insurance is a4. What kind of liability insurance protects you now as an EMT and as a student paramedic in your clinical sites? 5. At the scene of a shooting, you can see a patient with slow, gasping respirations, but the police will not let you enter the crime scene. How will you feel? 6. Your patient is critical, and you cannot secure the airway. Medical direction tells you to divert because they have no ICU beds. You repeat the urgency of your patient's condition and are still told to divert. You elect to override the physician's order and transport to that hospital. Can you justify disobeying the physician's order! .
- How can insurance companies offer a guarantee to pay for certain medical expenses? How do they determine the appropriate premium to charge?26) If an employee receives health insurance through his or her employer, the employer A) still withholds contributions for Medicare and Medicaid from the employee's paycheck. B) still withholds contributions for Medicare, but not Medicaid, from the employee's paycheck. C) still withholds contributions for Medicaid, but not Medicare, from the employee's paycheck. D) is no longer required to withhold contributions for Medicare or Medicaid from the employee's paycheck. 27) Which of the following is not part of the "individual mandate" provision of the Patient Protection and Affordable Care Act (ACA)? A) Individuals are allowed to opt out of the insurance program if they can prove they have no serious health issues and do so before the act fully takes effect in the year 2014. B) By 2016, fines for not having health insurance will be the greater of $695 per person or 2.5 percent of income. C) Beginning in 2014, individuals who do not…4 Suppose that a person’s demand curve for physician office visits is P = 200 – 20Q, where P is the price of an office visit, and Q is the number of physician visits per year. Also, suppose that the marginal cost of an office visit is always $60. c. Suppose this person obtains health insurance. The policy has no deductible, but has a coinsurance rate of 50 percent. How many visits will occur now? d. Suppose that the policy has no deductible but has a $20 co-payment. How many visits will occur now? e. Suppose the policy has a $20 co-payment and a $500 deductible. How many visits will occur now? f. Calculate the deadweight losses in the policies described in parts c, d, and e.
- Draw a supply and demand graph which describes healthcare in a society where all healthcare is provided by the market. Indicate where the uninsured might fall on the graph. Explain the consequences of the graph.Is the decision to buy pet insurance strictly an economic decision? Explain.1. Fun with cost-sharing. An important distinction in health insurance is between the list price (PL) and out-of-pocket price (PP) of a medical good or service. The list price is the official price that the provider charges the insurance company, while the out-of-pocket price is the price that the insurance customer faces. Sometimes, the out-of-pocket price depends on the list price. a. Suppose a consumer’s demand for a particular medical procedure is Q = 100 − PP. Draw her demand curve in PL–Q space under the assumption of no insurance and label it D1. You will have to think about the relationship between PL and PP to draw it correctly. b. Now assume the same consumer is fully insured. Think about how this affects the relationship between PL and PP and draw a full-insurance demand curve in PL– Q space. Label this curve D2. c. Finally, assume the consumer is part of a partial insurance plan with a copayment provision. Her insurance pays all expenses above and beyond her copayment of…