Medical care costs: how much welfare loss?
Article Abstract:
The one-period model used to analyze the costs of medical care and public welfare which takes technology as a constant is misleading. The loss of welfare as allocations are diverted for technology is exaggerated eventhough technology accounts for a considerable amount of investment. Thus, the increase in medical care costs cannot be accurately assessed using only a one-period time frame. In addition, tax benefits for employer-provided health insurance should be reduced but not eliminated as this may produce problems for the group health insurance market.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1992
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Distinguished fellow: in honor of Victor Fuchs
Article Abstract:
Health economist Victor Fuchs is noted for his efforts in pioneering research on health and household behavior. His emphasis is on the need for economists to focus on health issues aside from medical care services and concurrent costs. In his famous 1974 paper entitled 'Some Economic Aspects of Developed Countries," health maxims such as the relation between lifestyle and mortality rates was established and became common knowledge. Thus, his greatest contribution was his success in inciting public awareness of these health economic issues.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1992
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Policy watch: Medicare
Article Abstract:
Medicare which was initiated in 1966, is a significant aspect of the federal budget and has witnessed massive restructuring in recent years. The 1995 Medicare bill proposed vital changes in the medical care delivery system by offering more options but limits the scope for administered prices. Long-term strategy for reducing the cost of Medicare involves combining greater choices and risk contracts. This could initiate competitive pricing in Medicare by reducing rents in Medicare's administered prices to insured customers.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1996
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