Medicaid And Privately Insured Patients Case Study Project
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Medicaid And Privately Insured Patients Case Study Project
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- Isolate income and substitution effects from a decrease in the wage rate. (Note: In isolating the income and substitution effect, the practice is to draw a line parallel to the new price line and tangent to the indifference curve where the person was before the price change.) c. Now assume that Medicare is the only player. Medicare decreases the unit price of a service from $34 to $24. Show how the goods-leisure analysis is useful for addressing this question. (You will need to translate price per unit of service into work hours. Just assume and state what it is.) 5.4 Analyze the effects of the following changes on the physician’s decision to participate in the Medicaid program and on the number of visits provided to Medicaid and privately insured patients. a.
A cut in the fee Medicaid pays physicians for a visit (and Medicaid requires physicians who accept this payment to accept it as payment in full). How would the cut affect the number of visits provided to Medicaid patients? Use a graph. Show the point at which the doctor will not provide care to Medicaid patients at all. b. A $10 increase in the amount a private insurer pays per visit. Show the effect of the price change on the provision of care to Medicaid and private patients. c. A 15 percent increase in the wage rates of nonphysician personnel employed in the practice. (You need to assume a fraction of practice expense that goes to the wages of nonphysician personnel.) How will this wage change affect physician participation in Medicaid? Show graphically. 5.5 In 1988, there was a Medicare fee reduction in the United States.
Medicare cut the payment for open heart surgery by 2–15 percent. Answer the following questions: a. For thoracic surgeons, who perform open heart surgery, what is the income effect of this fee cut? b. What is the substitution effect induced by this fee cut, again for thoracic surgeons? c. What happens when the income effect dominates the substitution effect? Does an insurer realize savings from a fee cut when the income effect dominates the substitution effect? Explain your answer. Suppose you were director of your country’s national health insurance program. What public policies would you implement if you knew that the income effect dominates the substitution effect?
Medicaid And Privately Insured Patients Case Study Project Essay
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