You observe that states with higher income tax rates also tend to have higher rates of employer-provided health insurance. Is this a good test of the effects of tax policy on the demand for employer-provided health insurance? Explain.
Answer to relevant QuestionsGiven that subsidized health care leads to increased health care usage, is this necessarily due to moral hazard? Explain. The country of Cheapland currently has a national health insurance system that reimburses citizens for 90% of all heath care costs incurred. Cheapland’s government is considering a policy change that would provide medical ...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 ...In 1981, the federal government passed a law that gave states permission to change the structure of their Medicaid program. States could now, if they wished, require Medicaid beneficiaries to enroll in a Medicaid “managed ...Several recent studies have documented a “race to the bottom” in welfare benefit levels, whereby states respond to their neighbors’ benefit reductions with reductions in their own welfare generosity. Why might a state ...
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