Question

a) Congratulations! You have been hired by the U.S. government’s “nudge” unit to work on reforming the federal and state health care marketplaces (for example MNsure). What reforms (nudges) would you suggest and why (discuss at least three)? Make sure to specifically refer to the “Human” failings that these nudges are designed to overcome. (25 points)

Nudge is basically that people’s choices are their own but it is influenced by their perceptions of what others around them are doing.

Answer 1

The three nudges that can be used in the health care market place are:

Health insurance by default: There are several jobs that require people to choose between opting for health insurance and not. If by default, the option that is selected is 'I want health insurance', more people are likely to opt in as people usually do not change the default settings.

Online information: People could be sent an email on a monthly basis, providing information about the number of people in their region (district, city or state), who have recently opted for various health services. As people become more aware of their peers choosing the same, they will increase their usage of federal and state health services.

Providing real-life examples. The websites of federal and state health care marketplaces can be used to publish some stories of people who suffered just because they did not have appropriate health insurance or other ancillary services and could have been easily prevented. These stories can affect people's mindset and push them towards more health coverage.