Some firms offer their employees' health care plans with high deductibles, sometimes as much as $4,500 per year. What effect do high-deductible plans have on how often employees visit doctors or otherwise use health care services? If the federal government were to require that employer health care plans have deductibles that were no greater than $200 per year, would the employees in these plans be better off? Would the employers offering these plans be worse off? Briefly explain.

Some firms offer their employees' health care plans with high deductibles, sometimes as much as $4,500 per year. What effect do high-deductible plans have on how often employees visit doctors or otherwise use health care services? If the federal government were to require that employer health care plans have deductibles that were no greater than $200 per year, would the employees in these plans be better off? Would the employers offering these plans be worse off? Briefly explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

ECON201 Macroeconomics - Associate Professor Jamie J. Muter
5) Chapter 6 Problem 4.14
Some firms offer their employees' health care plans with high deductibles,
sometimes as much as $4,500 per year. What effect do high-deductible plans have
on how often employees visit doctors or otherwise use health care services?
If the federal government were to require that employer health care plans have
deductibles that were no greater than $200 per year, would the employees in these
plans be better off? Would the employers offering these plans be worse off? Briefly
explain.
I

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