HSPM 412 Unit 4 Questions with Correct Answers| Latest Update Guaranteed Success
Three broad goals in mind when developing health policy Health, wealth, and equity
How should the government address uninsurance? Private insurance markets, universal
public insurance, compulsory insurance, employer-sponsored insurance, and means tested
insurance are all options. These options are NOT mutually exclusive.
How should moral hazard be controlled? Cost-effective analysis, cost sharing,
gatekeeping/queuing, and prospective payments are all options. Contracts become less full, but
cost is still reduced.
How should health care provision be regulated? Publicly provide health care, establish
hospital markets, and set government prices.
The American Model is what in the developed world? outlier
The American Model has what three broad characteristics? Predominantly private insurance
market, partial universal health insurance, and private health care provision
Private insurance markets Non-elderly and non-poor seek insurance on the private market,
which is centered around employer-based health insurance
Partial universal health insurance Subsidized public insurance is provided to two vulnerable
subpopulations: elderly (Medicare) and non-poor (Medicaid)
Private health care provision Most hospitals and doctor's clinics are private
The American Model reflects a political preference for what? Free choice, for both patients
and doctors
, How did ESI come to play such a large role? Wages were frozen at existing levels, and the
IRS decided that the ESI should be exempt from taxation during World War II due to a shortage
of labor resulting from the draft.
Wage pass-through The costs of insurance (i.e. premiums) effectively come out of the
worker's wages.
Trilemma Any attempt by a nation to move closer to one goal involves a trade-off that
moves that nation further away from another goal.
Symmetric information in wage pass-through Age is readily observable. Younger employees
have lower health care costs.
Asymmetric information in wage pass-through Employer does not know about health risks
of individual employees.
Who does the differential wage pass-through effectively separate? Younger and older
employees
When can wage pass-through occur? Whenever employers can observe elevated health
risks among their employees.
Examples of wage pass-through Maternity benefits and obesity
Firm-specific human capital Knowledge and experience gained from working a particular
firm that is highly relevant there, but irrelevant at other companies
Pros of ESI Combats adverse selection and keeps healthy and unhealthy workers in the same
health insurance pool
Three broad goals in mind when developing health policy Health, wealth, and equity
How should the government address uninsurance? Private insurance markets, universal
public insurance, compulsory insurance, employer-sponsored insurance, and means tested
insurance are all options. These options are NOT mutually exclusive.
How should moral hazard be controlled? Cost-effective analysis, cost sharing,
gatekeeping/queuing, and prospective payments are all options. Contracts become less full, but
cost is still reduced.
How should health care provision be regulated? Publicly provide health care, establish
hospital markets, and set government prices.
The American Model is what in the developed world? outlier
The American Model has what three broad characteristics? Predominantly private insurance
market, partial universal health insurance, and private health care provision
Private insurance markets Non-elderly and non-poor seek insurance on the private market,
which is centered around employer-based health insurance
Partial universal health insurance Subsidized public insurance is provided to two vulnerable
subpopulations: elderly (Medicare) and non-poor (Medicaid)
Private health care provision Most hospitals and doctor's clinics are private
The American Model reflects a political preference for what? Free choice, for both patients
and doctors
, How did ESI come to play such a large role? Wages were frozen at existing levels, and the
IRS decided that the ESI should be exempt from taxation during World War II due to a shortage
of labor resulting from the draft.
Wage pass-through The costs of insurance (i.e. premiums) effectively come out of the
worker's wages.
Trilemma Any attempt by a nation to move closer to one goal involves a trade-off that
moves that nation further away from another goal.
Symmetric information in wage pass-through Age is readily observable. Younger employees
have lower health care costs.
Asymmetric information in wage pass-through Employer does not know about health risks
of individual employees.
Who does the differential wage pass-through effectively separate? Younger and older
employees
When can wage pass-through occur? Whenever employers can observe elevated health
risks among their employees.
Examples of wage pass-through Maternity benefits and obesity
Firm-specific human capital Knowledge and experience gained from working a particular
firm that is highly relevant there, but irrelevant at other companies
Pros of ESI Combats adverse selection and keeps healthy and unhealthy workers in the same
health insurance pool
