HCMG 202 EXAM 2( 100% Solved)
Types of market failures - ANSWERSasymmetric info
market power due to barriers to entry
public goods
free rider problem
discrimination
crony capitalism
Coase theorem (invariance principle) - ANSWERSin presence of externalities, private
markets can correct failures w/o gov't involvement via bargaining; assumptions:
STRONG PROPERTY RIGHTS
Low transaction costs
small number of actors
externalities - ANSWERSbehaviors that impose costs/benefits for others not in the price
can be on either (S/D) side
public good - ANSWERSnon-excludable
non-rival
can access without inhibiting others' use
Common resources - ANSWERSnon-excludable
RIVAL
everyone can access; but one's use DOES inhibit others' uses
Free-rider problem - ANSWERSfrom public/common goods;
using good without paying for it;
if common-> tragedy of the commons
usually underprovide/overuse
Crony C(r)apitalism - ANSWERSrent seeking behavior!!
political pressure distorts goods allocation
Other demand-side market failures - ANSWERSTAX EXEMPT ESHI distortions
Medicaid/Medicare often lack cost-sharing
health plan choice: employers offer one plan, fixed percentage contribution incentivize
costly plans
broad networks with overlapping providers
not risk adjusted
Other supply-side market failures - ANSWERSprovider consolidation
state-level regulation increase cost burden
, community ratings (small biz)
any willing provider law -> limit physician competition on price
lack of physician information
economic theory of regulation - ANSWERSeasier for physicians to organize
HHS - ANSWERS'53 Health, Edu, Welfare - split in '79
oversees:
AHRQ
HRSA
SAMHSA
CMS - ANSWERSmanages medicaid, medicare, CHIP, FHI marketplace
large focus on innovation; make reccs on improving care
FDA - ANSWERS'38 under HHS
ensure safety and efficacy of food and drugs
speedy or thorough approval?
CDC - ANSWERS'46 under HHS
surveillance of diseases
assists other nations
data warehouse
NIH - ANSWERS'30; huge funder of of medical and public health research 32bn -->
500m@penn
other agencies in health care - ANSWERSFTC; DoJ[med malpractice]; USDA (SNAP)
ERISA - ANSWERSemployee retirement income security act '74 ; EXEMPTS SELF-
INSURED PLANS FROM STATE LEVEL LEGISLATION
COBRA - ANSWERSConsolidated Omnibus Budget Reconciliation Act; '86; allows for
continued coverage after job leave- reduces job lock
EMTALA - ANSWERSEMERGENCY MEDICAL TREATMETN AND ACTIVE LABOR
ACT '86; Medicare defunds hospitals if they don't give emrgency screenings
HIPAA - ANSWERShealth insurance portability and accountability act; '96; health plan
guidelines; EHR standards
balanced budget act of 1997 - ANSWERSMedicare Part C; CHIP
Medicare modernization act 03 - ANSWERSMedicare Part D; expanded HSA's
Types of market failures - ANSWERSasymmetric info
market power due to barriers to entry
public goods
free rider problem
discrimination
crony capitalism
Coase theorem (invariance principle) - ANSWERSin presence of externalities, private
markets can correct failures w/o gov't involvement via bargaining; assumptions:
STRONG PROPERTY RIGHTS
Low transaction costs
small number of actors
externalities - ANSWERSbehaviors that impose costs/benefits for others not in the price
can be on either (S/D) side
public good - ANSWERSnon-excludable
non-rival
can access without inhibiting others' use
Common resources - ANSWERSnon-excludable
RIVAL
everyone can access; but one's use DOES inhibit others' uses
Free-rider problem - ANSWERSfrom public/common goods;
using good without paying for it;
if common-> tragedy of the commons
usually underprovide/overuse
Crony C(r)apitalism - ANSWERSrent seeking behavior!!
political pressure distorts goods allocation
Other demand-side market failures - ANSWERSTAX EXEMPT ESHI distortions
Medicaid/Medicare often lack cost-sharing
health plan choice: employers offer one plan, fixed percentage contribution incentivize
costly plans
broad networks with overlapping providers
not risk adjusted
Other supply-side market failures - ANSWERSprovider consolidation
state-level regulation increase cost burden
, community ratings (small biz)
any willing provider law -> limit physician competition on price
lack of physician information
economic theory of regulation - ANSWERSeasier for physicians to organize
HHS - ANSWERS'53 Health, Edu, Welfare - split in '79
oversees:
AHRQ
HRSA
SAMHSA
CMS - ANSWERSmanages medicaid, medicare, CHIP, FHI marketplace
large focus on innovation; make reccs on improving care
FDA - ANSWERS'38 under HHS
ensure safety and efficacy of food and drugs
speedy or thorough approval?
CDC - ANSWERS'46 under HHS
surveillance of diseases
assists other nations
data warehouse
NIH - ANSWERS'30; huge funder of of medical and public health research 32bn -->
500m@penn
other agencies in health care - ANSWERSFTC; DoJ[med malpractice]; USDA (SNAP)
ERISA - ANSWERSemployee retirement income security act '74 ; EXEMPTS SELF-
INSURED PLANS FROM STATE LEVEL LEGISLATION
COBRA - ANSWERSConsolidated Omnibus Budget Reconciliation Act; '86; allows for
continued coverage after job leave- reduces job lock
EMTALA - ANSWERSEMERGENCY MEDICAL TREATMETN AND ACTIVE LABOR
ACT '86; Medicare defunds hospitals if they don't give emrgency screenings
HIPAA - ANSWERShealth insurance portability and accountability act; '96; health plan
guidelines; EHR standards
balanced budget act of 1997 - ANSWERSMedicare Part C; CHIP
Medicare modernization act 03 - ANSWERSMedicare Part D; expanded HSA's
