7 22 mr white recently retired from his job at the

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22) Mr. White recently retired from his job at the age of 66. Unfortunately his employer does not offer retiree drug coverage and in 2005 he had to pay completely out-of-pocket for his annual drug expenses of $750. Would his annual total out-of-pocket drug expenses (including premiums) be more or less if he purchased standard coverage under a Part D Medicare drug benefit plan in 2006? Assume that he will continue to consume the same drugs at the same price in 2005 and 2006 regardless of their prescription insurance coverage (i.e., no moral hazard and no price discounts). Assume he has moderate to high income. a. Less b. More c. Same 23) Ms. Orange did not have prescription drug coverage in 2005. She is 90 years old and has arthritis and high blood pressure. She paid $4000 for her prescription drugs for her chronic conditions in 2005. What is her annual total out-of-pocket expense (including premiums) with standard coverage under a Part D Medicare drug benefit plan in 2006? Assume that she will continue to consume the same drugs at the same price in 2005 and 2006 regardless of their prescription insurance coverage (i.e., no moral hazard and no price discounts). Assume she has moderate to high income. 8
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Use this figure of results from the RAND Health Insurance Experiment to answer the next question 24) The results in this table suggest that expenditures are higher when cost sharing is lower because lower cost- sharing induces more episodes of care and not more expensive care per episode. 25) Managed care, a cost containment strategy in the 1990s, became less effective at keeping costs their down because of: (a) & (c) only 9
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2. Which country spends more than the United States on healthcare per capita? a. Japan b. Sweden c. Great Britain d. No country spends more 3. Approximately what percentage of the U.S. population lacks financial access to the healthcare system at some point during the year? 7. Tammy is a state legislator tasked with finding more money for her state's health care system, so she wants to figure out where health care funding currently comes from. Which of these sources of funding provides the most money to health care? 26) Once covered by Medicaid, there is no situation where a person younger than age 65 can enroll in Medicare. 10
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  • Spring '08
  • Harrington
  • Medicare beneficiaries

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