How do you respond to this post and ask a question to keep the discussion going? 1.

How do you respond to this post and ask a question to keep the discussion going?

Transcribed Image Text:

1. Why does health care spending continue to grow in the U.S.? Consider specific, demonstrable reasons, as opposed to vague concepts like "greed," etc. 1. There are multiple reasons to why health care spending continues to grow in the U.S, but some of these reasons are the following: 1. Not enough healthy people buying insurance: Insurance companies need healthier either young or older people to buy insurances to subsidize the insurance for those who are sicker. 2. Less penalty revenue: The ACA expected insurance mandate to work, as people were meant to get a fine if not enrolled in insurance plan, however waivers are being granted. 3. More taxes and fees: The ACA introduced new taxes and fees on insurance companies. 2. How does health insurance distort the normal supply and demand dynamics in health care, as opposed to other products and services? 1. Health insurance distorts the normal supply and demand dynamics in health care because health care is getting very expensive and low quality, while it is very much needed as we have a large group of people that need care. This is very different from other products and services, because usually a normal supply and demand dynamic is when a product is in demand by people, therefore the supply increases. 3. Consider the marginal cost and marginal benefits of a service that is at least partially covered by insurance. What other considerations make health care different from other products and services? 1. Marginal cost refers to the cost added by producing one additional unit of good or service and marginal benefit is the maximum amount a consumer is willing to pay for an additional good or service. The reason why health care is different from other goods and services is because the health care product is ill-defined, the outcome of care is uncertain the industry is dominated by nonprofit providers and payments are made by third parties. References: Five reasons why health care costs continue to increase. (2014, August 8). Information Station. https://informationstation.org/kitchen_table_econ/five-reasons-why-health-care-costs-continue-to-increase/? AWE VD CDTzvcWBQvlla6kUnFBzk1mwt.loTvMDQ0BrBD2k 1. Why does health care spending continue to grow in the U.S.? Consider specific, demonstrable reasons, as opposed to vague concepts like "greed," etc. 1. There are multiple reasons to why health care spending continues to grow in the U.S, but some of these reasons are the following: 1. Not enough healthy people buying insurance: Insurance companies need healthier either young or older people to buy insurances to subsidize the insurance for those who are sicker. 2. Less penalty revenue: The ACA expected insurance mandate to work, as people were meant to get a fine if not enrolled in insurance plan, however waivers are being granted. 3. More taxes and fees: The ACA introduced new taxes and fees on insurance companies. 2. How does health insurance distort the normal supply and demand dynamics in health care, as opposed to other products and services? 1. Health insurance distorts the normal supply and demand dynamics in health care because health care is getting very expensive and low quality, while it is very much needed as we have a large group of people that need care. This is very different from other products and services, because usually a normal supply and demand dynamic is when a product is in demand by people, therefore the supply increases. 3. Consider the marginal cost and marginal benefits of a service that is at least partially covered by insurance. What other considerations make health care different from other products and services? 1. Marginal cost refers to the cost added by producing one additional unit of good or service and marginal benefit is the maximum amount a consumer is willing to pay for an additional good or service. The reason why health care is different from other goods and services is because the health care product is ill-defined, the outcome of care is uncertain the industry is dominated by nonprofit providers and payments are made by third parties. References: Five reasons why health care costs continue to increase. (2014, August 8). Information Station. https://informationstation.org/kitchen_table_econ/five-reasons-why-health-care-costs-continue-to-increase/? AWE VD CDTzvcWBQvlla6kUnFBzk1mwt.loTvMDQ0BrBD2k

Answer rating: 100% (QA)

This is a wellstructured analysis of why health care spending continues to grow in the US The points about the lack of healthy individuals buying insurance reduced penalty revenue under the ACA and th... View the full answer