2. insurers in th States care differently from other medical expenses; maternity care was either excluded entirely from coverage or subject to a flat lump-sum cash ("indemnity," in insurance jargon) benefit. Why do you think this was so? (Please give a reason other than discrimination against women, which might have been a reason as well but does not illustrate the economic principle we are looking for.) During the 1970s, twenty-three US states mandated that treatment related to pregnancy be covered by insurers in the same way as any other types of treatment were, and in 1978, such coverage became uniform throughout the United States. Would mandated maternity benefits make working in a salaried position more or less attractive to women? Would it make women of childbearing age more or less attractive to employees? Would it increase or decrease the number of births performed by cesarean section (surgical removal of the baby from the mother's uterus, a more expensive method of delivery than a normal delivery)? Who do you think bore the expense of implementing this mandate consumers in the form of higher product prices.

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2. Prior to 1970, private health insurers in the United States usually treated maternity care
differently from other medical expenses; maternity care was either excluded entirely from
coverage or subject to a flat lump-sum cash ("indemnity," in insurance jargon) benefit.
Why do you think this was so? (Please give a reason other than discrimination against
women, which might have been a reason as well but does not illustrate the economic
principle we are looking for.) During the 1970s, twenty-three US states mandated that
treatment related to pregnancy be covered by insurers in the same way as any other types
of treatment were, and in 1978, such coverage became uniform throughout the United
States. Would mandated maternity benefits make working in a salaried position more or
less attractive to women? Would it make women of childbearing age more or less
attractive to employees? Would it increase or decrease the number of births performed by
cesarean section (surgical removal of the baby from the mother's uterus, a more
expensive method of delivery than a normal delivery)? Who do you think bore the
expense of implementing this mandate - consumers in the form of higher product prices,
firms 'owners in the form of lower profits, or employees in the form of lower pay?
Explain your answer.
Transcribed Image Text:2. Prior to 1970, private health insurers in the United States usually treated maternity care differently from other medical expenses; maternity care was either excluded entirely from coverage or subject to a flat lump-sum cash ("indemnity," in insurance jargon) benefit. Why do you think this was so? (Please give a reason other than discrimination against women, which might have been a reason as well but does not illustrate the economic principle we are looking for.) During the 1970s, twenty-three US states mandated that treatment related to pregnancy be covered by insurers in the same way as any other types of treatment were, and in 1978, such coverage became uniform throughout the United States. Would mandated maternity benefits make working in a salaried position more or less attractive to women? Would it make women of childbearing age more or less attractive to employees? Would it increase or decrease the number of births performed by cesarean section (surgical removal of the baby from the mother's uterus, a more expensive method of delivery than a normal delivery)? Who do you think bore the expense of implementing this mandate - consumers in the form of higher product prices, firms 'owners in the form of lower profits, or employees in the form of lower pay? Explain your answer.
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