Suppose the government decided to subsidize health insurance for the
Suppose the government decided to subsidize health insurance for the currently uninsured, requiring participants to pay half of their health insurance costs up to 10% of total family income.
a. How might this policy affect the use of medical care by the uninsured and their health?
b. How might this policy affect the employer provision of health insurance?
c. How might this policy affect hours of labor supplied by workers?
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