Indicate whether the statement is true or false, and justify your answer.Price rationing helps remove patients who do not really need treatment from queue lines.
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Indicate whether the statement is true or false, and justify your answer.
Price rationing helps remove patients who do not really need treatment from queue lines.
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- Discuss the kind of pressure the Health Maintenance Organizations (HMO) exerted on the price of drugs.Please answer the following questions thoroughly: Some argue that the price elasticity of demand can be used to determine whether a good or service is a luxury or a necessity. In medical care, a procedure with an elastic demand would be considered optional, or elective, and a procedure with an inelastic demand would be a medical necessity. 1) Should planners use price elasticity of demand as a guide to defining services that are medically necessary? 2) What are the advantages of such a classification scheme? 3) What are the drawbacks?Preventative care refers to care taken to prevent future diseases rather than to treat current ones. Compared to emergency room care, preventative care is rarely urgent, and benefits can be difficult to measure-if you had the flu vaccine this year but did not catch the flu, it is difficult for an individual to tell if that was because of the shot or assiduous hand washing. Given this description, we would expect the price of preventative care to be relatively price elastic compared to emergency room care. less more
- Assume a consumer's demand for a medical service is as follows: Q = 100 - Pp where Pp is the out-of-pocket price she actually faces. She is considering four different insurance options: uninsurance, full insurance, a 50% coinsurance plan, and a copayment plan with a $25 copay. Assume this service has a list price of PL = $70. Calculate Q under each insurance plan. Please fill in the final answer without showing the middle steps (a number only, without any extra space, symbol, word, etc.) If the customer is uninsured, Q= • If the customer is fully insured, Q= • If the customer has a 50% coinsurance plan, Q= • If the customer has the copayment plan, Q=Where is the bargaining power of consumers greater? 1) The auto industry 2) Pharmaceuticals explain your choice.The consumer demand equation for tissues is given by q = 11,664 −216 p +p2, where p is the price per case of tissues and q is the demand in weekly sales. Determine the price elasticity of demand E when the price is set at $24. (Round your answer to three decimal places.)E =
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- Suppose the government sets the maximum price for a normal doctor's visit at $20, but the current market price is $40. As a result of this government action, doctors will see: more patients. the same number of patients. fewer patients.Last year in a particular market area it is found that 1000 people have their vision checked each year. The average price of the exam is $50. This year for the first time insurance companies will pay for half the price of the exam, with the patient paying the other half. Demand for eye exams is inelastic, with an elasticity coefficient of 0.2 between a price of $25 and $50. How many people will now have their vision checked? Show your work.Over the last decade prices in the US for insulin has more than tripled E, and is more than ten times the average price in other countries. More than 37 million people in the US have diabetes and many rely on the biologic medication to stay alive. Patients with private insurance generally don't pay the full list price as drug companies negotiate discounts with insurers to win their business, and patients usually pay part of the price as a co-pay or deductible. However, the uninsured (who usually have lower incomes) and even some with insurance can end up paying several thousand dollars per year for their medication. These high prices have led many patients to make life-or-death decisions over whether to buy their insulin or pay their other bills. In order to combat these high prices, the US House of Representatives recently passed a bill to cap insulin prices at $35 for a one-month supply. However, as part of President Biden's "Build Back Better" plan, it is unlikely to pass in the…