Medicare is a social insurance program for elderly individuals that covers the cost of healthcare if...

Medicare is a social insurance program for elderly individuals that covers the cost of healthcare if they fall sick. Suppose a country decides to enact a similar program called BN-care because it is discovered that many elderly citizen are going bankrupt after they get sick, as the result of high medical costs.

a. What does this bankruptcy situation tell us about private insurance markets? Why might this be the case?

b. Why are consumers willing to pay for insurance, given that the payment reduces their expected lifetime income?

c. Suppose the enactment of BN-care only reduces the percent of elderly who go bankrupt after they get sick by 50%.

What might be going on? (multiple answers possible)

Expert Solution

a. Bankruptcy situation tells about the private insurance market is that the insurance coverage for the sick elderly people is not worth of what should have been. This bankruptcy situation of the people indicates more and more number of people should pay for the insurance premiums and get themselves covered under it if they are not insured till now. However, if they are insured then they the consumers should increase their premium to extend the benefits. However, if the consumere are paying the high premium and still getting bankrupt then the private insurance companies should increase their insurance coverage. Private insurance companies might also consider to lower down its premium so that more people can now buy the insurance coverage plans.

b. Consumers are willing to pay for the insurance because medical costs we very high. The savings of the people might fall low in front of high medical costs. Therefore, it's always better to pay for an insurance although the payment might reduce the lifetime payment, in order to avoid any sudden financial losses.

C. If the enactment of BN care reduces the percentage of elderly people going bankrupt by 50%, then this shows the insurance coverage of medical costs under the BN care is not that very high. This is the reason even after paying the insurance amount, people still have to pay money from their own pockets, thus it shows the medical insurance coverage is not that much. Moreover, another reason could be, the BN care insurance premium costs might be high so everyone could not afford it. This is the reason 50% people got bankrupt as they might not have been able to pay for their insurance premiums.

Rahul Sunny answered 2 years ago

Given the fact that Medicare and Medicaid cover the elderly and the indigent and CHIP covers...

Given the fact that Medicare and Medicaid cover the elderly and the indigent and CHIP covers children, explain why is there such pushback to compulsory (universal) health coverage in the United States.

Problem 1. Medicare is a national health insurance program for the elderly (aged 65 or above)...

Problem 1. Medicare is a national health insurance program for the elderly (aged 65 or above) in the U.S. , providing coverage to over 55 million individuals. The purposeof this problem is to familiarize you with some details on the structure and operation of Medicare. a. Why is Medicare generally regarded an “entitlement” program? Is there any eli- gibility criteria other than age? (Note : a firm grasp of the nature of entitlement programsis of critical importance if one wants...

What’s the difference in social insurance, such as Medicare, and actuarial insurance, such as car insurance,...

What’s the difference in social insurance, such as Medicare, and actuarial insurance, such as car insurance, and why is the difference important in health care?

U.S. citizens are eligible for Medicare, a national health insurance system for the elderly, the day...

U.S. citizens are eligible for Medicare, a national health insurance system for the elderly, the day they turn 65 years old. Many believe that people with health insurance are less likely to die prematurely because they will be more likely to seek treatment and doctors will be more willing to conduct tests and procedures for them. Explain how you could use regression discontinuity in this setting to estimate the relationship between health insurance coverage and premature death. Be sure to...

This Medicare program offers voluntary supplemental medical insurance. A. Medicare Part B. B. Medicare Part A....

This Medicare program offers voluntary supplemental medical insurance. A. Medicare Part B. B. Medicare Part A. C. Medicare Advantage. D. Medicare Part C.

Medicare is a two-part federal health insurance program which provides medical benefits for covered individuals. Part A of Medicare provides coverage for which of the following expenses?

Medicare is a two-part federal health insurance program which provides medical benefits for covered individuals. Part A of Medicare provides coverage for which of the following expenses? Immunizations In-patient drug charges Hearing examinations Prescription eyeglasses

The Medicare Program is a national health insurance program to provide health care for the aged...

The Medicare Program is a national health insurance program to provide health care for the aged and certain disabled persons, which of the following is INCORRECT? a. Part D-Medicare prescription drug coverage b. Part A-Nutrition Programs c.Part C-The Medicare Advantage Program d. Part B-Medical Insurance

The personal income tax, corporate income tax, and contributions to social insurance (Medicare and Social Security)...

The personal income tax, corporate income tax, and contributions to social insurance (Medicare and Social Security) together makes up approximately ______ of all federal government tax revenues annually (based on annual data from the period 2010-2015.) A. 95% B. 65% C. 45% D. 15% E. 4.5%

Many elderly people have purchased medigap insurance policies to cover a growing Medicare copayment. These polices...

Many elderly people have purchased medigap insurance policies to cover a growing Medicare copayment. These polices cover some or all of the medical costs not covered by Medicare. use economic theory to explain how these policies likely influence the demand for health care by elderly people.

Introduction to Healthcare Insurance Coding, Billing, and Reimbursement Medicare and Medicaid are federal programs that cover...

Introduction to Healthcare Insurance Coding, Billing, and Reimbursement Medicare and Medicaid are federal programs that cover a large proportion of the US population with healthcare. The two have similar objectives in the area of providing care, but there are significant differences in them that concern reimbursement. Tasks: Describe each program, Medicare and Medicaid. Provide the major features of each program. Discuss how these programs differ from each other. Briefly describe the process of how to bill for each program.

Question