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Unformatted text preview: economics that dictates the appropriate share of GDP and any wealthy nation can choose to spend a large share of its income on medical care instead on something else a. Cutler believes that the money spent on medicine has been worth it and advancements in neonatal care and cardiac treatment justify their expenses B. Wal-Mart examples (raises the question of what we as individuals can afford to spend on health care vs. the states capacity) 1. Higher deductibles translate to shifting the cost of medical care back onto individuals 2. What will happen? Insurance premiums go down & out-of-pocket responsibility goes up a. in form of deductibles, co-payments b. for people w/o serious health problems, this will mean savings c. but for those who are very sick will end up paying more i. financial penalty for being sick will grow 3. As insurance protection recedes, the individual exposure will increase, point where illness could cost somebody a 1/3 or of income!...
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- Spring '07