Mary is planning to travel to a country where there is some risk of contracting malaria. Themarket price for the medication that prevents malaria is $400 (the preventative medicine is notcovered by insurance). It would take her 2 hours to visit her doctor and get the prescriptionfilled. The opportunity cost of her time is $50/ hour.If she contracts malaria we assume that she will be sick for two weeks and unable towork. Expenses for medication, doctors' visits, and lab tests to treat the malaria will be$1500. She will lose wages and benefits of $1000 for each week she is away from work.Assume the cost of the pain and suffering is $2000.Mary believes that her chance of getting malaria without preventative medicine is about one in10.A) What is the maximum price that Mary would pay if insurance covered the full cost oftreatment if she got malaria?B) What is the maximum price that Mary would pay for the medication if she has noinsurance?

A. If the insurance covered the full cost of its treatment, then the maximum amount that it would be…

Answered: Mary is planning to travel to a country…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price ($) 100 SO 20 $1,600 $800 Demand $12,000 $1,200 Demand (under coinsurance) 100 120 Supply In the above figure, the decreased coinsurance rate leads to deadweight loss of ___ Quantity of care (visits)
Consider two treatments. Treatment 1 saves one year of life at a cost of $10,000. Treatment 2 saves ten years of life at a cost of $1,000,000. Which treatment is more cost-effective? Why?
Consider two treatments. Treatment 1 saves one year of life at a cost of $10,000. Treatment 2 saves ten years of life at a cost of $1,000,000. Which treatment is more cost-effective? Why? Consider two treatments. Treatment 1 saves six years of quality adjusted life at a cost of $90,000. Treatment 2 saves three years of quality adjusted life at a cost of $60,000. Which treatment is preferred from a cost utility analysis perspective? Suppose Jay has been experiencing back pain and that there are two options for back pain: Treatment Regimen Total Cost Pain Reduction Do nothing $0 0 units Cortisone injections $600 30 units Calculate the ICER between cortisone injections and doing nothing. Jay says he is willing to pay $10 for a per unit of pain reduction. Should he choose cortisone injections? Another treatment is discovered. It costs $700 and reduces pain by 25 units. Should he choose the new treatment?
For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount of $21,313.50. Outlier threshold for Medicare is $25,800. (a) John admitted hospital A for pancreas transplant. The charges for John’s treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much payment hospital A would get from Medicare? (b) Bryan admitted hospital B for pancreas transplant. The charges for Bryan’s treatment was same as John, $128,000, but cost to charge ratio for Hospital B was 0.25. How much payment hospital B would get from Medicare?
Assume a market basket consisting of gasoline (10 gallons), milk (3 gallons), ground beef (6 pounds), and men’s underwear (1 pack). While it may seem strange, former Federal Reserve Chairman Alan Greenspace often monitored sales of men’s underwear as a broader indicator of economic health. Calculate the cost of the market basket given current prices for gasoline ($3.25/gal), milk ($4.10/gal), ground beef ($3.59/pound), and men’s underwear ($9.49/pack). The cost of the market basket one year ago was $71.16. Calculate the year-over-year inflation rate.
1. If you are trying to use a RDD setup to evaluate the effect of health insurance on health, and you qualify for a health insurance subsidy if your family income is below $20,000. What's the running variable? What's treatment, and what's the outcome?
Once HMOs were initiated, Amy and Becky decided to switch to HMOs. The Medicare program will pay the HMO 90% of the "average costs of those who remain the Medicare" for every individual who leaves and enrolls in the HMOs. Below presents the costs to the government. Patient Traditional Medicare Medicare Plus HMOs Amy 1000 1000 Becky 2000 2000 Carols 3000 3000 Donny 4000 4000 1. Calculate the average cost per individual who remains in Medicare. $ 2. How much does the government need to pay to the HMOs for Amy and Becky? $ 3. The total cost to the government with HMO is 4. The total cost to the government BEFORE HMO is $
Which option is the most effective for companies and employees: a standard fee-for-services health care insurance option or a high-deductible health insurance plan.
[Maximum 200 words]. Do some internet based research to compare drugs prices across countries and comment on how expensive they are in the US compared to some of the other western countries. Ball park averages should be fine (no need to be exact, but you may want to cite your sources). Compare their sizes also in terms of population as well (for instance US vs Canada or UK). Discuss the possible effects of such a policy both in the US and Canada.
interest). At what age is the rate of disease development the highest? Source: Adapted from P. Coleman et al., “Endemic Stability―A Veterinary Idea Applied to Public Health," The Lancet 357 (2001): 1284–86. 19. If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x. The marginal cost is the rate of change of the cost with respect to the number of items produced, that is, the derivative C'(x). (a) Show that if the average cost is a minimum, then the marginal cost equals the average cost. (b) If C(x) = 16,000 + 200x + 4x³/2, in dollars, find (i) the cost, average cost, and marginal cost at a produc- tion level of 1000 units; (ii) the production level that will minimize the average cost; and (iii) the minimum average cost. 20. If R(x) is the revenue that a company receives when it sells x units of a product, then the marginal revenue function is the derivative R'(x). The profit function is
Part a and b
"Self-insurance" behaviors are actions one takes that lower the probability of a negative health outcome. (True/False) Economics

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