2. The twin problems of the health care industry as viewed by society are cost and access. First of all, the cost of getting health care is very high and it is getting higher each day. This has been mostly caused by the combination of high cost and an increase in quantity of services provided to the communities. The other problem involves access to health care. American enjoy limited or no access to health care. Many efforts have been done to reform this, but still but still many people are left without access to the care. These two problems are related due to the fact that if the health care industry gets to high off course people no longer will be able to have any access to it. The higher prices are, the lower access people have to it.
5. The main groups in this country without health insurance are the poor people. This include single-parent families, black Americans and Hispanics. It also includes people who work for small firms and low-wage workers.
6. The special characteristics of the U.S. health care market are Ethical and equity considerations, asymmetric information, spillover benefits, and third-party payments: insurance. Each one of these characteristics affects health care in some way. For example, ethical and equity considerations affect health care in the way that society does not consider unjust for people to be denied to health care access. Society believes that it is the same thing as not owning a car or a computer. Asymmetric information also gives health care a boost in prices. People who buy health care have no information on what procedures and diagnostics are involved, but on the other hand sellers do. This creates an unusual situation in which the doctor (seller) tells the patient(buyer) what services he or she should consume. It seems like the patient has to buy what the doctor tells him. The topic of spillover benefits also cause a rise in prices. This meaning that immunizations for diseases benefit not only the person who buys it but the whole community as well. It reduces the risk of the whole population getting infected. And the last characteristic is third-party insurance. Which involves all the insurance money people have to pay. This causes a distortion which results in excess consumption of health care services.
8. The demand and supply factors that contribute health care to rise in cost are the rising incomes, aging people, unhealthy lifestyles and the role of doctors. In rising income, the more people get paid, the more expenses in health care they will have. People are also getting older and older each day. The percentage of people over 65 years is now around 14%. Aging people need more and more health care every day. People are also not taking very good care of themselves. They are not having a healthy life. The use of alcohol, tobacco and other drugs cause this. And this causes a higher demand for health care. And finally the role of doctors in society also make health care very demanding.
a) As I mentioned above, asymmetric information produces a very high increase in costs of health care. Doctors know much more than their patients about this field and they kind of force their patients to get what they think is best and how much , and what type and all of those expensive decisions.
b) Also when doctors are paid on a fee-for-service basis, health care costs increase. They are paid separately on everything they do. They may also lie about things that have to be operated or replace just to get that fee. Doctors have power over the clients.
c) Defensive Medicine is also done a lot in this country. In order for doctors to be protected against lawsuits, they test and proceed on their patients over and over. This also causes an increase in the cost of health care.
d) And last of all is Medical Ethics. This meaning that doctors are committed to use the best of the best on their patients. People have to live the longest possible with the best treatment and medicines there is around. This makes health care very expensive.
15. a) Preferred provider organizations are doctors and hospitals that agree to provide health care to insured individuals at rates negotiated with an insurer. The fees in this organizations are less than those usually charged so this provide reduce health insurance premiums and health care expenses. b) Health Maintenance Organizations are providers which contract with employees, insurance companies, labor unions, or governmental units to provide health care for their workers or other who are insured. Because HMOs have a fixed annual revenue they can loose money so they have an incentive to keep prices down.
17. I think that the market for donated human organs is a very good idea. This will promote people to donate their organs more and it will also help to save many lives. Even though it may sound a little immoral, once you are in search of an organ, it is then that you understand the importance of these donations and also the market. From the outside it looks like a crime but once you are caught in the inside, it is something that can truly Words
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