Question 1

In which of the following countries do elective medical procedures generally receive lower priority, often resulting in longer waiting times than are common under more privately-funded systems?

Accepted Answer

Countries with publicly-funded healthcare systems, like Canada and the United Kingdom, often prioritize urgent and life-saving treatments, which can lead to longer waiting times for elective procedures compared to more privately-funded systems.

Question 2

Disadvantages to the employer-based health insurance model which is common in the United States include

Accepted Answer

All of the choices listed are recognized disadvantages of the employer-based health insurance model in the United States. Losing a job means losing insurance, which can create gaps in coverage. This model can also reduce job mobility, as individuals may be reluctant to leave jobs due to fear of losing their health benefits. Additionally, the way insurance companies set premiums can be influenced by the employer-based model, affecting affordability and accessibility of insurance.

Question 3

In the United Kingdom, most doctors are privately employed.

Accepted Answer

In the United Kingdom, most doctors are employed by the National Health Service (NHS), which is a publicly funded healthcare system.

Question 4

In Canada, the government alone is responsible for paying health care providers for delivering medically necessary procedures.

Accepted Answer

In Canada, the government is responsible for paying health care providers for delivering medically necessary procedures through a single-payer system.

Question 5

In Japan, residents pay for most routine and preventive medical care.

Accepted Answer

In Japan, residents are responsible for paying for most routine and preventive medical care, such as doctor's visits, vaccinations, and screenings.

Question 6

Under Obamacare, residents who do not have health insurance that meets certain basic requirements are subject to a tax penalty.

Accepted Answer

The Affordable Care Act, commonly known as Obamacare, originally included an individual mandate requiring most Americans to have health insurance or pay a tax penalty. However, the penalty was reduced to $0 starting in 2019 under the Tax Cuts and Jobs Act.

Question 7

Match the following countries with the type of health care delivery system each uses:
-Canada

Accepted Answer

Canada uses a single-payer system, where the government pays for health care services, but the services are delivered by private entities.

Question 8

Match the following countries with the type of health care delivery system each uses:
-Japan

Accepted Answer

The answer of Match the following countries with the type...

Question 9

Match the following countries with the type of health care delivery system each uses:
-the United Kingdom

Accepted Answer

The United Kingdom has a nationalized health care system, which means that the government provides and pays for all healthcare services.

Question 10

Match the following countries with the type of health care delivery system each uses:
-the United States

Accepted Answer

The United States primarily uses a private health care system, characterized by private health insurance and healthcare providers.

Question 11

For the following countries, specify whether hospitals are privately owned or owned by government, and whether doctors are privately employed or employed by government:
a. Canada
b. Japan
c. the United Kingdom
d. the United States

Accepted Answer

The answer of For the following countries, specify whether hospitals...

Question 12

Briefly explain what is included in the following provisions which are a part of the Patient Protection and Affordable Care Act (ACA):
-the individual mandate
-the employer mandate
-regulation of private insurers
-state health exchanges

Accepted Answer

The answer of Briefly explain what is included in the...

Question 13

If a meat packing plant has 30 employees and each employee has a 1 in 90 chance of getting injured on the job, then on average, one employee will get injured on the job every

Accepted Answer

The probability of one employee getting injured is 1/90. With 30 employees, the probability of any one of them getting injured is 30/90, or 1/3. Therefore, on average, one employee will get injured every 3 years.

Question 14

If a meat packing plant has 30 employees, each employee has a 1 in 90 chance of getting injured on the job, and the cost of treating a job-related injury is $18,000, then the annual cost per injury for each employee is

Accepted Answer

The answer of If a meat packing plant has 30...

Question 15

With respect to the insurance market, what is adverse selection?

Accepted Answer

Adverse selection occurs when one party in a transaction has more information than the other, particularly in insurance markets. This is often the case when individuals have more knowledge about their health status than the insurance company, leading them to purchase policies that are more favorable to them but potentially detrimental to the insurer.

Question 16

As healthy people leave an insurance pool, premiums rise, which cause more people to leave the pool and even higher premiums. This describes

Accepted Answer

This phenomenon is known as a "premium death spiral." It occurs when healthier individuals opt out of an insurance pool due to rising premiums, leaving a higher concentration of less healthy individuals. This leads to even higher premiums, as the insurance pool becomes riskier to insure, causing more healthy people to leave and further escalating the cycle.

Question 17

A provision of the Affordable Care Act states that private insurance companies cannot deny coverage to anyone because of a preexisting medical condition. By offering health insurance to people with preexisting medical conditions, this provision eliminates ________ for both the insurance company and the policy holder, and eliminates ________ for the insurance company.

Accepted Answer

The provision eliminates asymmetric information by ensuring that insurers cannot deny coverage based on preexisting conditions, and it eliminates adverse selection by allowing people with preexisting conditions to obtain insurance, thus broadening the risk pool.

Question 18

One reason why adverse selection problems arise in the market for health insurance is because

Accepted Answer

Adverse selection in health insurance markets occurs because individuals with a higher risk of needing medical care (e.g., sick people) are more likely to purchase health insurance than those who are healthy. This can lead to a disproportionate number of high-risk individuals in the insurance pool, increasing costs for insurers.

Question 19

Which of the following should help reduce the adverse selection problem?

Accepted Answer

All of the options listed contribute to reducing the adverse selection problem in health insurance markets. The employer mandate (A) requires employers to offer health insurance to employees, expanding the pool of insured individuals beyond those who might seek insurance due to poor health. The individual mandate (B) requires all individuals to have health insurance or face a penalty, which helps to ensure that healthier individuals, who might otherwise opt out, participate in the health insurance market. Keeping high-risk and low-risk individuals in the same pool (C) prevents the segmentation of the insurance market, which can lead to adverse selection where only those expecting high medical costs buy insurance, driving up premiums. Collectively, these measures aim to balance the risk pool and make insurance more affordable and accessible for everyone.

Question 20

Which of the following provisions of the Affordable Care Act will work to keep high-risk and low-risk people in the same health insurance pool?

Accepted Answer

All of the mentioned provisions work together to ensure that both high-risk and low-risk individuals remain in the same insurance pool, thereby spreading the risk and cost across a broader population. The employer mandate requires employers to offer health insurance, the individual mandate requires individuals to have insurance, and the stipulation regarding preexisting conditions ensures that high-risk individuals cannot be excluded.

Quiz 14: The Economics of Health Insurance and Health Care

In which of the following countries do elective medical procedures generally receive lower priority, often resulting in longer waiting times than are common under more privately-funded systems?

Disadvantages to the employer-based health insurance model which is common in the United States include

In the United Kingdom, most doctors are privately employed.

In Canada, the government alone is responsible for paying health care providers for delivering medically necessary procedures.

In Japan, residents pay for most routine and preventive medical care.

Under Obamacare, residents who do not have health insurance that meets certain basic requirements are subject to a tax penalty.

Match the following countries with the type of health care delivery system each uses: -Canada

Match the following countries with the type of health care delivery system each uses: -Japan

Match the following countries with the type of health care delivery system each uses: -the United Kingdom

Match the following countries with the type of health care delivery system each uses: -the United States

For the following countries, specify whether hospitals are privately owned or owned by government, and whether doctors are privately employed or employed by government: a. Canada b. Japan c. the United Kingdom d. the United States

Briefly explain what is included in the following provisions which are a part of the Patient Protection and Affordable Care Act (ACA): -the individual mandate -the employer mandate -regulation of private insurers -state health exchanges