Question

tell whether each of the following 4 scenarios represents more an efficiency or equity

problem

9.

A free market advocate asks why a government healthcare mandate should require all

people to purchase health insurance equivalent to a “fully loaded Lexus.”

10.

A man with headaches, caused by stress at work, wants an MRI because he thinks he may

have a tumor. The doctor says that there is almost zero probability that he has a tumor, and she

warns him that the MRI is very expensive. He has insurance, and he still wants the test for the

tumor.

11.

A primary care physician comments that she has a 4-year old patient with lymphoma. Her

family cannot afford the $3,000 annual deductible of a catastrophic insurance policy.

12.

High blood pressure is often called the “silent killer.” One does not feel ill because of high

blood pressure until he/she has possibly a stroke. By law any hospital emergency room must treat

anyone with the symptoms of a stroke, but maybe if that person could have afforded high pressure

medicine, the stroke could have been prevented.

13.

The Canadian health care system has its controversies but whatever its inadequacies would

do a better job relative to the U.S. on

a.

efficiency

b.

equity

14.

Who would be considered the third-party in the delivery of medical care?

a.

doctors and hospitals

b.

patient

c.

the insurance company

d.

all of the above

15.

Third parties in general (not just with health care) are inefficient because

a.

it’s not their money.

b.

it means a large bureaucracy.

c.

it always involves insurance.

d.

all of the above

Answer 1

I assume that the question as about what is lacking in the given scenarios.

Answer 9).

A free market advocate asks why a government healthcare mandate should require all people to purchase health insurance equivalent to a “fully loaded Lexus.” : This mandate creates inequality, as not every citizen can afford to have such big insurance, resulting in people to be uninsured who can't afford.

The welfare system is not distributed effectively. Though it is efficient there is less equity.

10).  A man with headaches, caused by stress at work, wants an MRI because he thinks he may have a tumor. The doctor says that there is almost zero probability that he has a tumor, and she warns him that the MRI is very expensive. He has insurance, and he still wants the test for the tumor.

He wants an MRI for mental satisfaction and happiness. Since he has paid for the insurance, he wants to take advantage of it increase the utility. So, this is related to efficiency problem.

11).  A primary care physician comments that she has a 4-year old patient with lymphoma. Her family cannot afford the $3,000 annual deductible of a catastrophic insurance policy.

Again this is related to inequality. The system might be efficient but it is creating inequality.

12). High blood pressure is often called the “silent killer.” One does not feel ill because of high blood pressure until he/she has possibly a stroke. By law any hospital emergency room must treat anyone with the symptoms of a stroke, but maybe if that person could have afforded high pressure medicine, the stroke could have been prevented.

This is related to income disparity. For economic growth the government has increased prices and taxes for many drugs. This decision can give good results in national growth but it creates inequality, as few people are wealthy and can afford things but medical care is not reaching to poor people.

The system is efficient but this is the problem of equity.

13). Correct option is B. equity.

As the health care in Canada has better distribution of the healthcare services and also its low cost makes it affordable and accessible without financial barriers, and superior health status.

14). Option C is correct : The third-party in the delivery of medical care is Insurance company.

option A and B are the Direct parties. so these options are incorrect. and so as option D.

15). Correct option is C - it always involves insurance.