Chapter 1 Introduction:
Health economics studies the allocation of resources to and within the health economy.
Policymakers and health economists seek to determine whether spending on new technology is worth it.
Three possibly explanations to the su
Chapter 12: Asymmetric Information
In situations of asymmetric information, the allocation of resources will not be
economically efficient. The asymmetry can be resolved directly through appraisal or
Health Econ Chapter 1-2
Chapter 1: Introduction
What is Health Economics?
Health economists draw on various sub-disciplines of training within economics,
including labor economics, industrial organization, public finance, and cost-benefit
Health Econ Chapters 8-11
Chapter 8: Demand and Supply of Health Insurance
The patients portion of a bill is sometimes called coinsurance. Insurance coverage is provided
through the payment of premiums or taxes
What is insurance?
People pay insurance rat
Health Econ Chapters 4-6, Fuchs 1-2
Economists use the tools of demand and supply analysis to define the efficient allocation
of resources in a competitive market, and this idealized sort of market is convenient to
explain the concept
Fuchs Ch. 3
The Physician: The Captain of the Team
Most economists believe that part of physicians high incomes represents a monopoly
return resulting from restrictions on entry to the profession and other barriers to
Differences in modes of
Health Econ Ch. 12
Managed F&C plans is where members (consumers and employers) would pay a fixed
amount per person per month for food and clothing, presumably less than they were
paying (together) under the fee-for-service plan
Chapter 15 The Physicians Practice
A Benchmark Model of the Physicians Practice
Describing a physician as a utility maximizer just means that the physician values items
In the benchmark model, the physician gets utility from n
1. I the long run hospitals will continue to remain open as long as they are
comvering average costs.
2. When the state of Oregon decided to expaind Medicaid: The likelihood of
having to either borrow money or skip paying a bill declined 40%.
Consider a health insurance market. A firm is looking to purchase an insurance plan for their employees.
Why are firm-specific demand elasticitys greater than elasticitys of demand, in general? What does this
imply about competition in the marketplace?
With the Affordable Care Act in place, experts thought that if people bought health
insurance they would find a private doctor and stop using hospital emergen
According to the Mayo Clinic, post-traumatic stress disorder (PTSD) is a mental
health condition that's triggered by a terrifying event, either experiencing it or witnessing
Buying generic brands save more money for the consumer than buying brand
name products. When it comes to prescription
Ep = % change in Qd % change in P, or (Q/Q) (P/P)
Inelastic demand- price change does not affect the demand as much
Elasticity is defined as the responsiveness of a dependent variable to changes in
an independent variabl
Hospital Retrospective Reimbursement
The retrospective reimbursement system is when reimbursement is paid to
hospitals for an amount equal to their costs for treating the patient, plus a certain
percentage above cost for profit and
Lecture XII Chapter 12
HDHD high deductible health plans isnruance + health savings
HMOs still small aprt of pie but its tools became really critical; today, virtually
no FFS (traditional Medicare).
MCOs: rganizational structure a network of org
What Every Philosopher Should Know about Health Economics
- Health economics suggests three dimensions of output: technological, public health,
and access to service (can be looked at from the perspective of distributional equity)
- Health care is p
Health Econ Notes
Paying For Medical Care
The ultimate cost falls on families and individuals even when the payment mechanism
makes it appear that the bills are being sent elsewhere
Besides fee-for-service, the principal ways in which consumers
Chapter 11: The Organization of Health Insurance Markets
Loading costs and the behavior of insurance firms
o Good year for insurers: carriers pay out less than collected; in bad years,
they pay out more.
o Moral hazard can lead firms to offer certain typ
Chapter Four: Economic Efficiency and Cost-Benefit Analysis
Efficiency: the wants of consumers, as reflected in their demand, be gauged against
the cost of society of the required production
Consumer Surplus: area above the price and below the demand cu
Chapter 2: Microeconomic Tools for Health Economics
The Choices we make
Romantic point of view
o No opportunity cost and therefore no limits
o As long as MB>0
Economic Point of view
o Efficiency implies resources ought to be used up until t
Health Care Econ Study Guide
Chapter 1: Introduction
What is Health Economics?
Health economics is how economists draw on various sub-disciplines of training
within economics, including labor economics, industrial organization, public
finance, and cost-b
Chapter 5: Production of Health
The Production Function of Health
Production function: summarizes the relationship between inputs and outputs (health
inputs and health)
o Health status is an increasing function of health care
Marginal product: marginal
Chapter 6: The production, cost, and technology of Health Care
Production and the possibilities for substitution:
Health care practitioners generally recognize only one way of treating a given illness
Monotechnic Point of View: the belief that only a si
Chapter 10: Asymmetric Information and Agency
Adverse selection: a phenomenon in which insurance attracts patients who are likely to
use services at a higher than average rate, which results from asymmetric information.
Chapter 9: Consumer Choice and Demand
Indifference curves provide insight into how different people may choose between the
present and the future through rate of time preference.
Theory of rational choice over health care and other goods?
o Yes: many heal