Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Federal Employees Health Benefits Program as the Model for Marketplace Plans Many Americans have little choice about health insurance. For the majority, the choices are to accept the plan offered by their employer, by their state Medicaid agency, or by Medicare, or to do without. Even Americans who have a choice lack the information needed to choose wisely. In many respects, the Federal Employees Health Benefits Pro-gram is superior. Its structure reflects the concept of managed competition first advocated by a Stanford University economist (Enthoven 1984):• Each year employees choose one of several private insurance plans in an online exchange.• Employees pay the marginal cost of choosing more expensive coverage.• Insurance providers must accept everyone and must charge everyone the same premium. How has this program worked? Compared to private employer plan premiums, federal plan premiums have risen more slowly in some years and have risen more rapidly in others (Liu and Jin 2013). The overall pattern, however, is similar to the patterns of other private insurer plan premiums. Although the Federal Employees Health Benefits Program served as model for ACA marketplace plans, it differs from those plans in several ways. The most important difference is that federal employees are typically well-paid professionals. Nearly two-thirds of federal employee households have incomes that are at least four times the federal poverty level; only 11 percent of uninsured households do (Bovbjerg 2009). Not surprisingly, given that their customers are apt to be very sensitive to insurance premiums, ACA marketplace plans have been aggressive in taking steps to keep premiums low. Many excluded high-priced providers from their 2014 networks, and they appear poised to implement additional steps to bring down costs. Discussion questions: 1. One plan costs $8,000. The government will pay $6,500. How much would a $10,000 plan cost the employee? 2• Is equal government payment important, regardless of the plan the employee chooses? 3. How does equal payment affect employees’ choices? 4.Would varying premiums (such as premiums based on age) work better, so that older employees would be attractive risks for insurers 5. What problems would varying premiums cause? 6. Why didn’t insurers for the Federal Employees Health Benefits Program take aggressive steps (like creating narrow networks) to bring down premiums? 7. Why do the high incomes of federal employees affect their choices? Its chapter 3 case study in Economics for Healthcare Managers, Third Edition.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91708223

Have any Question?


Related Questions in Business Economics

In 2013 gallup conducted a poll and found a 95 confidence

In 2013, Gallup conducted a poll and found a 95% confidence interval of the proportion of Americans who believe it is the government's responsibility for health care. Give the statistical interpretation. I do not underst ...

In random sampling why is cluster sampling an example of

In random sampling, why is cluster sampling an example of probability sampling?

An independent-measures study has one sample with n 10 and

An independent-measures study has one sample with n = 10 and a second sample with n = 15 to compare two experimental treatments. What is the df value for the t statistic for this study?

Suppose the market demand and market supply curves are

Suppose the market demand and market supply curves are given by the following equations: QD = 120 - 10P QS = 20P a. Draw a figure of supply and demand representing this market. Be sure to label the axes and intercepts. ( ...

Suppose that the weight x in pounds of a 30 year old man is

Suppose that the weight (x) in pounds of a 30 year old man is a normal random variable with mean 182.9 and standard deviation of 20lbs. in what percentile is a 30 year old man who weighs 150lbs?

Why is the us banking system known as a dual banking system

Why is the US banking system known as a dual banking system? What historical developments led to that structure? How is the structure justified today?

Suppose the production function for a firm is given

Suppose the production function for a firm is given by:  q=4L 0.75 K 0.25 . If the firm currently has  10  units of capital (K) and  10  units of labor (L), then calculate the Marginal Rate of Technical Substitution (MRT ...

A shipment of 15 televisions sets contains 3 defective sets

A shipment of 15 televisions sets contains 3 defective sets. A hotel purchases 9 of these televisions sets. What is the probability that the hotel receives at least one of the defective sets?

With its current leverage cowcow copr will have net income

With its current leverage, COWCOW copr will have net income next year of $7 million. If COWCOWs corporate tax rate is 30% and it pays 7% interest on its debt, how much debt can COWCOW issue this year and still receive th ...

Money in a bank account earns 7 simple interest per yeara

Money in a bank account earns 7% simple interest per year. (a) What is the effective rate of interest for the time interval [3,4]? (b) What is the effective rate of discount for the time interval [3,4]?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As