Healthcare in the United States by Stephen L. Walston & Kenneth L. Johnson

Author:Stephen L. Walston & Kenneth L. Johnson [Walston Stephen L. & Johnson Kenneth L.]
Language: eng
Format: epub
ISBN: 9781640551497
Publisher: Health Administration Press
Published: 2020-10-15T00:00:00+00:00

Discussion Questions

How is this an example of diminishing returns in healthcare?

Would you recommend that Dr. Good offer the new tests? Why or why not?

ADVERSE SELECTION

Somet Health Insurance Company wants to sell a health insurance product for $700 per month. There is no requirement for healthy people to have insurance coverage. The company conducts a survey to see how different populations respond to the proposed cost. People with no illnesses and disabilities, generally the young and healthy, respond that they do not spend $700 on healthcare in an entire year, and most feel they would not waste so much money on premiums when the chance of needing surgery or expensive healthcare treatments is so small. However, older, sicker people think that $700 per month is a great deal, as most of them spend far in excess of this amount on healthcare. It seems like a great deal for them.

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