Question 4 The COVID-19 pandemic has created a surge of patients going to hospitals, at times threatening to overwhelm the hospitals' capacities. In the event that hospitals run out of beds, healthcare workers, or equipment, care must then be rationed. This is a major shift away from doing the most for each individual patient to using scarce healthcare resources to save the most lives. Use marginal analysis (marginal benefit/cost) to explain these two different approaches to allocating healthcare resources.

Question 4 The COVID-19 pandemic has created a surge of patients going to hospitals, at times threatening to overwhelm the hospitals' capacities. In the event that hospitals run out of beds, healthcare workers, or equipment, care must then be rationed. This is a major shift away from doing the most for each individual patient to using scarce healthcare resources to save the most lives. Use marginal analysis (marginal benefit/cost) to explain these two different approaches to allocating healthcare resources.

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter2: Using Economics To Study Health Issues

Section: Chapter Questions

Problem 2QAP

See similar textbooks

Similar questions

There are many ways to define and measure the benefits and costs that go into the GPI. How do you think a person with a biocentric worldview would measure these differently from a person with an anthropocentric worldview? Whose GPI for the year 2005 would likely be higher?
QUESTION 5 When the outcomes are the same for all of the interventions being studied, then the economic analysis method that can be applied is: A. Cost-minimization analysis B. Cost-consequence analysis C. Cost-utility analysis D. Cost-effectiveness analysis
Recall that the goal of the Affordable Care Act (also known as Obamacare) legislation was get more people access to affordable health insurance. It was widely reported that health insurance premiums under Obamacare were getting much more expensive. What was the main factor causing the premiums to get more expensive? Many of the new enrollees were young teenagers unable afford their own insurance, so other people are paying for them The plan required a lot of paperwork and administrative tasks, and insurance companies had to hire a lot of people to get these tasks done The new enrollees were older and sicker than expected, increasing health care usage and expenses, causing costs and insurance premiums to rise Obamacare created new medical technologies which were expensive to use
Decisions about Science & Technology play a significant role in shaping our future society. In Chapter 11 of our textbook, the example of traffic congestion is provided which relates to a city like Toronto. There are two identified solutions to the problem of traffic congestion: Widen the roads OR improve the public transport system. If the roads are widened it makes commuting to the city more appealing but it will also increase the number of vehicles on the road. On the other hand, if the public transport system is improved it will decrease the number of vehicles on the road and could decrease the time it takes to commute.
Show how a consumer would choose between medical care and health(y) behavior activities using the graphical representation of the consumer choice model (assume that “amounts” of healthy behavior have “costs” or prices). How might health education affect this choice? What if medical care becomes more productive (more health benefit per “unit” of medical care consumed)? What if medical care becomes cheaper? Explain in terms of the model (i.e. what does it change in the model).
Suppose that there are 2 types of plans available to you. Plan A has a deductible of $500, with 10 percent co-insurance rate for many health care services. Plan B has a deductible fo $1000, with 35 percent co-insurance rate. Plan A costs $200 per month in premiums while Plan B costs $80. Discuss characteristics of people who would choose Plan A versus Plan B. Assuming that both plan types exist in the market, who would likely choose Plan B over Plan A? What plan would you choose?
Environmentalists and economists often find themselves at odds with each other. The conflict between the romantics and the rationalists surfaced again in the debate over air-quality standards set under the Clean Air Act of 1990. Under the law, the Environmental Protection Agency (EPA) must establish standards that promote public health. The EPA’s cost-benefit analysis assigns a value for each life saved of $4.8 million. Is $4.8 million a reasonable value to place on a life? What questions would economists consider relevant in determining the value of a life? How would environmentalists react to the questions economists ask?
Graph of TB & TC from Hours Working: The graph below measures the benefits and costs from working, from the perspective of a worker. The variable Q stands for the number of hours the worker works, such that the horizontal axis measures the hours of work per week. On the assumption that they can choose their hours, the worker estimates a total benefit ( TB) from working according to the equation, TB = 1.335Q. (The value "1.335" might be interpreted as the hourly wage paid to the worker.) The worker estimates their total cost from working with the equation, TC = Q(0.463)+Q²(0.027). (The TC of each Q might be interpreted as including the displeasure of effort and exertion from working Q hours.) It can be assumed that TC > TB for all hours beyond point B (32.3). TB, TC 40 H 30 G 20 D 10 - B 10 20 30 40 Reference: TB & TC of Working The two graphs show the TB and TC estimated by a worker for different hours of working per week. Point A corresponds to 32.3 hours. The NB of 16.15 hours is…
Show how a consumer would choose between medical care and health(y) behavior activities using the graphical representation of the consumer choice model (assume that “amounts” of healthy behavior have “costs” or prices).
Explain the different methods concerning the cost benefit analysis (Health economics)
Economics Use the following information to determine the costs to you and/or to the insurance company for the following occurrences:1) You have $500 per person Wellness Benefit.2) You have a $500 İndividual Deductible and your family (spouse and children) has a $500 Family Deductible.3) You have a $10,000 annual Maximum Family Out-of- Pocket expense provision.4) Once you have met your Individual or Family Deductible, your insurance will pay 80% of the expenses and you will pay 20% as your co-pay.Unless the occurrence is a Wellness expense, you and/or your family have to meet their deductibles first before insurance will pay anything. Example:Assume that you have met your deductible, and you go to the Emergency Room for a large cut on your shin which required cleaning, 20 stitches, a tetanus shot, and antibiotics. (80/20 plan)Total Charges = $2,500 totalYour Responsibility = $2,500*.20 = $500 (goes toward your Max Out of Pocket)Insurance Responsibility = $2,500*.80 = $2,000 Question:…
Problem 2. Congratulations! Upon graduating you accept a well-deserved job with XER Consulting. Your first job involves a consulting gig with a state subcommittee on health care issues. The Senate health care subcommittee is considering the expansion of two existing public health programs. One program concerns additional funding for nursing homes around the state. The other program involves additional funding for community health centers around the state. In both cases the funding is supposed to be used to attract more nurses for expansion purposes. Your job involves the following four tasks: