Question

Purchase of Health Insurance

1) As one looks at historical data in the US from 1950 forward, describe the medical services that have been most commonly covered by health insurance (for the most people, and earliest in history), and those that have been covered less commonly (for fewer people, and later in history).

2) Discuss two economic aspects of the demand for these various services that will help understand the historic trends you described in part 1).

3) Related to question 1) and 2), would you expect more people to purchase insurance against losses associated with dental care or with hospital care? Why?

Answer 1

A)medical services covered under health insurance:

- outpatient care

- trips to the emergency room

- treatment in the hospital for inpatient care

- care before and after your baby is born

- your lab tests

- pediatric services, etc.

B)economic aspect of the demand for these various services are gender, personal income, socio economic status, physician supply, health status policies and beliefs of a notion.

C) more people purchase health insurance because health insurance protects form unexpected high medical costs.

- pay less for covered in network health care

- free prevention like vaccines, screenings, and some check ups, even before meet deductible.

- it covers hospitalization expenses

- it covers day care procedures and ambulance changes.