Problems of Moral Hazard in Health Insurance
Studies that identify the effect of a voucher program on the student achievement of those who use vouchers typically do so by comparing the achievement of students who used the voucher to switch to a... More > different school to the achievement of otherwise similar students who wanted to but could not use the voucher to switch to a different school. Will such studies capture the effects of increased competition on the inefficient schools in the voucher-eligible area? Explain.< Less
Calculation of Deadweight Loss in Health Insurance
Let’s say there’s a world-wide influenza pandemic. Assume that the marginal cost (supply) of influenza vaccinations is constant at $40. Assume that everyone in society has health... More > insurance that pays 80% of all medical services, including flu shots. Draw a market demand for flu shots and show graphically what the socially optimal number of flu shots is (not considering lives saved). Show how many flu shots will be provided in this market given the insurance. Show the deadweight loss caused by the health insurance.< Less
Problems to Increase Insured People
"Suppose that in response to learning that some sick individuals were denied health insurance, the government mandates that insurance companies must offer insurance to everyone at unregulated... More > rates.
(a) Why might this not help reduce the number of uninsured? Explain.
(b) An alternative strategy for reducing the number of uninsured might be to mandate that insurance companies charge individuals with health problems no more than individuals without health problems. Would this help reduce the number of uninsured? Explain.
Analysis of Issues Related to Health Insurance
"(a) What are primarily intended to address the problem of insuring people who don't have health insurance?
(b) Would a public national health insurance system reduce the total spending on... More > health care in our economy?
(c) What has been found to be the primary cause of the rapid rise in health care costs?
(d) What affect might a national health insurance system have on this cause of rising health care costs?