Health Economics



1) Much like with deductibles, health savings accounts (HSAs) often reset at the end of the year. In
other words, if you do not spend everything in your HSA by the end of the year then you lose the money
in the account. How would this influence the rate of elective procedures at the end of the year? Could
this have any impact on non-elective procedures?
2) What result did the RAND health insurance experiment find concerning the impact of insurance on
health outcomes? How would you explain this result?
3) Evaluate the following statement: “The cost of medical care to the patient is considerably more than
just the money that is spent.”
4) In a well labelled picture, draw the price for a plan that has a $500 deductible and then covers 95% of
all expenditures afterwards. Draw a demand curve that intersects this price at 3 places. Explain how
you will determine at which intersection the patient will choose to consume at.