[Answered] Health Economics Short Answer Questions

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Short Answer Questions 

 

 

Q1: Price transparency: 

 

  1.     Before leaving office, the Trump administration had proposed price transparency legislation. What actions do hospitals and health insurance companies have to take as a result of this price transparency directive? I have attached a summary of the legislation for your reference 
  2.     What is not included here is that there is a $300/day fine for hospitals for not posting prices. Comment on what you expect the impact of the legislation will be on hospitals. Explain why

 

 

Q2: Innovation

 

Agree or disagree with each of the following and explain why:

 

  1.     Exclusivity periods for pharmaceuticals should be made longer so that pharmaceutical companies do not need to price as highly in each year of patent protection to cover the cost of their initial investment.
  2.     Exclusivity periods for pharmaceuticals should be made longer so that pharmaceutical companies have an incentive to invest in more new molecules

 

Q3: True or False: Answer the 3 questions in this section with a True or False and explanation

 

  1.     True or false: Theory suggests that improved health should lead to increased economic growth at the country level.
  2.     True or false: As technology to predict disease incidence improves, markets for health insurance should be able to function better.
  3.     True or false: Variation in medical care utilization across geographic areas is largely due to inefficiency in production.

 

 

 

 

Q4: Health Insurance

 

  1.     Imagine you are a health insurance company. From an actuarial perspective (meaning in terms of analyzing statistics to calculate insurance risks), why is it important, that you have a mix of types of people in your healthcare insurance plan?
  2.     How did the Affordable Care Act affect your ability to have an ideal mix?

 

Q5: Pharmaceuticals 

 

  1.     What is the portion of total US health expenditures accounted for by prescription drugs? 
  2.     One side of the argument makes the case for why this amount is too high and should be lower, and conversely, the other side of the argument makes the case that this amount is appropriate or perhaps even too low. Provide one argument each for both sides as well as an argument for why we do not spend enough on prescription drugs. 

 

Q6: Oregon Health Insurance Experiment

 

We discussed this unique experiment in class whereby individuals were randomly assigned by lottery to receive Medicaid (or not).

 

  1. Very briefly, summarize the 2-3 major results from this experiment. 

 

  1. Provide 1-2 hypotheses as to how you might explain these results.

 

 

 

Solution

  1. (a) Hospitals are required to provide consumers with their healthcare prices. Health insurance companies offering non-grandfathered health insurance policies will be required to provide personalized out-of-pocket cost information to their consumers

(b) The hospitals will have to adhere to the legislation and avail their healthcare prices to avoid incurring fines. This legislation will be helpful to curb the exaggerated health prices in hospitals and encourage competition………….Purchase the link to access the full answer @$5