Economics in Health Care
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The paper discusses how insurance increases consumption of heath care services because it protects individuals from the real price of care and it encourages beneficiaries to consume more. The paper notes the research that thinks that the extra consumption and expenditures associated with insurance may not lessen welfare, and then considers how this impacts the debate on expanding insurance to those who are uninsured and on making insurance more generous for those who are in high deductible or high coinsurance plans. The paper also explains how the loss of economic interests is generally figured as the cost of care minus an estimate of the value of the care.
From the Paper:"In order to appreciate the role of economics in relation to health care, it is vital to understand the basic structure and purpose of economics. The proposal of economics is concerned with the relationships between different individuals and organizations related to the making and utilization of goods and services. The economic need of the individual for health care is more on the concern of medical treatment. The notion of utilization makes clear the health care services offered in hospitals and clinics and the medicines for the medical treatment (The Comprehensive Overview of Health Economics: The Economic Relationships of Health Care, n.d.).
"With the recent changes that have taken place in the health care system in this country there is soon going to be a great demand for clinics to serve low income groups. There are many barriers that exist to providing services in the low income sector. One barrier is financial. There are currently two federal programs that work to alleviate these financial barriers. The first is Medicare, which does not require low income, and Medicaid. There is soon to be a third program in the form of government sponsored health insurance. The second barrier is that of supply and organization of medical care resources. Federal health care services are going to find themselves in great demand with the implementation of the Federal health insurance (Fox, 2010)."
Sample of Sources Used:
- The Comprehensive Overview of Health Economics: The Economic Relationships of Health Care. (n.d.). Retrieved June 2, 2010, from HubPages Web site: http://hubpages.com/hub/The-Comprehensive-Overview-of-Health-Economics-The- Economic-Relationships-of-Health-Care
- Fox, Peter. (2010). The Federal Perspective. Retrieved June 4, 2010, from JStor Web site: http://www.jstor.org/pss/3763089
- Frick, Kevin D. and Chernew, Michael E. (2008). Beneficial Moral Hazard and the Theory of the Second Best. Retrieved June 4, 2010, from Web site : http://www.rwjf- eriu.org/pdf/WP57_Frick_Chernew.pdf
Cite this Term Paper:
Economics in Health Care (2013, February 17) Retrieved January 28, 2020, from https://www.academon.com/term-paper/economics-in-health-care-152460/
"Economics in Health Care" 17 February 2013. Web. 28 January. 2020. <https://www.academon.com/term-paper/economics-in-health-care-152460/>