Question

A mandatory health insurance plan costs $4,000. One worker earns $24,500 in employment income and $500 in investment income. Another worker earns $48,000 in employment income and $2,000 in investment income. A third worker earns $68,000 in employment income and $7,000 in investment income. A premium-based system would cost each worker $4,000. A wage tax–based system would cost each worker 8.5 percent of wages. An income tax–based system obesity have increased costs by hundreds of bil- lions of dollars (Biener, Cawley, and Meyerhoefer 2017). Discussion Questions • Why are prices so much higher in the United States? • Why is the intensity of care higher in the United States? • Should Medicare negotiate drug prices? • Why does the history of health insurance matter? • How does obesity increase costs? Case 1.2

          A mandatory health insurance plan costs $4,000. One worker earns
$24,500 in employment income and $500 in investment income.
Another worker earns $48,000 in employment income and $2,000
in investment income. A third worker earns $68,000 in employment
income and $7,000 in investment income. A premium-based system
would cost each worker $4,000. A wage tax–based system would
cost each worker 8.5 percent of wages. An income tax–based system
obesity have increased costs by hundreds of bil-
lions of dollars (Biener, Cawley, and Meyerhoefer
2017).
Discussion Questions
• Why are prices so much higher in the United States?
• Why is the intensity of care higher in the United States?
• Should Medicare negotiate drug prices?
• Why does the history of health insurance matter?
• How does obesity increase costs?
Case 1.2

Added by Luisa M.

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