Traders from the faraway nation of Chplandia have brought infected goods to market in the capital of Pcoria. As a result, a new infectious disease called chpitis is spreading through the Pcorian population. Chpitis is not fatal, but leaves victims severely disfigured for the remainder of their lives. Throughout this problem, assume no discounting of future years.Assume that everyone in Pcoria agrees that a QALY is worth $5,000. Will a 20-year-old chpitis victim decide to get the ointment, which costs $10,000? What about a 60-year-old chpitis patient? What about a 69-year-old chpitis patient?Suppose that the Pcorian government enrolls all its citizens in the Universal Insurance Program which pays (with 10% coinsurance) for any treatment. So the ointment costs patients only $1,000 out of pocket. Will a 20-year-old chpitis victim still decide to get the ointment? What about a 60-year-old chpitis patient? What about a 69-year-old chpitis patient?

1) A 20 year old chpitis victim will get the treatment because he gets five quality adjustedlife…

Answered: for the remainder of their lives

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Traders from the faraway nation of Chplandia have brought infected goods to market in the capital of Pcoria. As a result, a new infectious disease called chpitis is spreading through the Pcorian population. Chpitis is not fatal, but leaves victims severely disfigured for the remainder of their lives. Throughout this problem, assume no discounting of future years.

Assume that everyone in Pcoria agrees that a QALY is worth $5,000. Will a 20-year-old chpitis victim decide to get the ointment, which costs $10,000? What about a 60-year-old chpitis patient? What about a 69-year-old chpitis patient?
Suppose that the Pcorian government enrolls all its citizens in the Universal Insurance Program which pays (with 10% coinsurance) for any treatment. So the ointment costs patients only $1,000 out of pocket. Will a 20-year-old chpitis victim still decide to get the ointment? What about a 60-year-old chpitis patient? What about a 69-year-old chpitis patient?

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