Consider demand for medical services is as follows:Q= 200-3PP, wherePPis the out-of-pocket price ...
Consider demand for medical services is as follows:Q= 200-3PP, wherePPis the out-of-pocket price she actually faces. She is considering four different insurance options: No insurance; full insurance, a coinsurance plan; and a copayment plan. Assume this service has a list price ofPL= $40.
a. Calculate Q under no insurance.
b. Calculate Q and the soical loss loss under full insurance.
c. Calculate Q and the social loss under a 50% coinsurance plan.
d. Calculate Q and the social loss under a copayment plan with a $15 copay.
e. Would the coinsurance or the copayment plan be better at mitigating moral hazard? Why?
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Consider demand for medical services is as follows:Q= 200-3PP, wherePPis the out-of-pocket price ...
Moral Hazard Before we leave the subject of the impact of insurance on the demand for...
Moral Hazard Before we leave the subject of the impact of insurance on the demand for medical care, we need to introduce the concept of moral hazard. Moral hazard refers to the situation in which consumers alter their behavior when provided with health insurance. For example, health insurance may induce consumers to take fewer precautions to prevent illnesses or to shop very little for the best medical prices. In addition, insured consumers may purchase more medical care than they otherwise...
Becky's comprehensive major medical health insurance plan at work has a deductible of $740. The policy...
Becky's comprehensive major medical health insurance plan at work has a deductible of $740. The policy pays 65 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a five-day hospital stay, totaled $9,253. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $4,800. a. Calculate the...
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Becky’s comprehensive major medical health insurance plan at work has a deductible of $820. The policy...
Becky’s comprehensive major medical health insurance plan at work has a deductible of $820. The policy pays 80 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a nine-day hospital stay, totaled $9,033. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $3,700. a. Calculate the...
Becky’s comprehensive major medical health insurance plan at work has a deductible of $720. The policy...
Becky’s comprehensive major medical health insurance plan at work has a deductible of $720. The policy pays 85 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a four-day hospital stay, totaled $9,213. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $4,600. a. Calculate the...
ecky's comprehensive major medical health insurance plan at work has a deductible of 760. The policy...
ecky's comprehensive major medical health insurance plan at work has a deductible of 760. The policy pays 80 percent of any amount above the deductible. While on a hiking rip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a five-day hospital stay, totaled $8,913. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of- pocket expenses at $3,100. a. Calculate...
Help Save & Exit Submit Problem 9-3 (L09.2) Becky's comprehensive major medical health insurance plan at...
Help Save & Exit Submit Problem 9-3 (L09.2) Becky's comprehensive major medical health insurance plan at work has a deductible of $820. The policy pays 80 percent of any amount above the deductible. While on a hiking trip. Becky contracted a rare bacterial disease. Her medical costs for treatment including medicines, tests, and a nine day hospital stay, totaled 59.033. A friend told her that she would have paid less if she had a policy with a stop-loss feature that...
69) A policy that pays you back for actual expenses is called A) An indemnity plan....
69) A policy that pays you back for actual expenses is called A) An indemnity plan. B) A deductible plan. C) A reasonable and customary plan. D) A reimbursement plan. E) A coinsurance plan m The set amount that you must pay toward medical expenses before the insurance company pays benefits is called A) Deductible. B) Reimbursement C) Indemnity. D) Internal limit. E) Reasonable and customary charges. 71) Which of the following is a government health care program? A) Health...
Question: Evaluate the relationship between cost per visit and week. Interpret your regression re...
Question:
Evaluate the relationship between cost per visit and week.
Interpret your regression results by
discussing significance of the regression equation and magnitude
of the estimated coefficients.
TRUE MASTER PLAN True Master Plan (TMP) is a managed care company that provides and finances health care services for employees of DigiTech Media, Inc. Approximately 5,000 employees at DigiTech Media are currently enrolled in TMP's health insurance plan. The number of enrollees has increased over the past year as DigiTech Media continued...
1) The most common approach to health and healthcare in America is A) Reactive Health Approach...
1) The most common approach to health and healthcare in America is A) Reactive Health Approach B) Proactive Health Approach C) Health Promotion Approach D) Health Maintenance Approach 2) The Proactive Health Approach is A) treatment oriented. B) more costly than reactive health. C) prevention oriented. D) highly promoted by the insurance industry 3) The Reactive Health Approach is A) prevention oriented. B) leads to a high degree of health and wellness. C) less costly than proactive health. D) treatment...
Becky's comprehensive major medical health insurance plan at work has a deductible of $740. The policy pays 65 percent of any amount above the deductible. While on a hiking trip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a five-day hospital stay, totaled $9,253. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of-pocket expenses at $4,800. a. Calculate the...
ecky's comprehensive major medical health insurance plan at work has a deductible of 760. The policy pays 80 percent of any amount above the deductible. While on a hiking rip, Becky contracted a rare bacterial disease. Her medical costs for treatment, including medicines, tests, and a five-day hospital stay, totaled $8,913. A friend told her that she would have paid less if she had a policy with a stop-loss feature that capped her out-of- pocket expenses at $3,100. a. Calculate...
Help Save & Exit Submit Problem 9-3 (L09.2) Becky's comprehensive major medical health insurance plan at work has a deductible of $820. The policy pays 80 percent of any amount above the deductible. While on a hiking trip. Becky contracted a rare bacterial disease. Her medical costs for treatment including medicines, tests, and a nine day hospital stay, totaled 59.033. A friend told her that she would have paid less if she had a policy with a stop-loss feature that...
69) A policy that pays you back for actual expenses is called A) An indemnity plan. B) A deductible plan. C) A reasonable and customary plan. D) A reimbursement plan. E) A coinsurance plan m The set amount that you must pay toward medical expenses before the insurance company pays benefits is called A) Deductible. B) Reimbursement C) Indemnity. D) Internal limit. E) Reasonable and customary charges. 71) Which of the following is a government health care program? A) Health...
Question:
Evaluate the relationship between cost per visit and week.
Interpret your regression results by
discussing significance of the regression equation and magnitude
of the estimated coefficients.
TRUE MASTER PLAN True Master Plan (TMP) is a managed care company that provides and finances health care services for employees of DigiTech Media, Inc. Approximately 5,000 employees at DigiTech Media are currently enrolled in TMP's health insurance plan. The number of enrollees has increased over the past year as DigiTech Media continued...
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