StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Health economics Charles e phelps,, - Essay Example

Cite this document
Summary
Therefore, this individual opts to pay more than the insurance policy actual premium so as to be safe in an occurrence of a loss.
An…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.8% of users find it useful
Health economics Charles e phelps,,
Read Text Preview

Extract of sample "Health economics Charles e phelps,,"

Download file to see previous pages

A risk premium is the average expected loss. Ua represents the utility function of an averse person showing the level of satisfaction at income level Ia. X is the risk premium. The graph above represents the levels of satisfaction of two individuals with different levels of income. Io is the expected value. From the graph, Ia is less than Io meaning that the averse person receive a low income and consequently has a utility level that is lower than the expected utility. In the expected benefit calculation, where “m” is the medical treatment, Pm is its price, f is the probability that an event will occur and C is the co-payment rate, why does it matter that M depends on C?

This is because co-payment helps in the reduction of medical care consumption costs. Without copayment, an individual may not be able to access and afford medical treatment. Copayment is also important when it comes to covers relating to medical services since it helps an individual to prevent unwanted expenses. Therefore, when calculating an individual’s expected benefit, all expenses and benefits incurred or gained on medical services have to be considered. Copayment has to be considered since it covers an individual’s medical expenses and that is why M depends on C during calculation of expected benefit.

This is the trend of individuals with risky lifestyles or jobs to acquire life insurance. It can make the insurance company face screening and signaling problems. Insurance is always more likely bought by individuals who are prone to higher risks than those with low risks. Insurance firms try to reduce the adverse selection problems of having those who insure big risk buying their product. They do this through adjusting prices and measuring risk. Consequently, life insurance firms need medical documents and will not give policies to individuals who have long term illness.

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Health economics Charles e phelps,, Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Health economics Charles e phelps, Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/miscellaneous/1607069-health-economics-charles-e-phelps
(Health Economics Charles E phelps,, Essay Example | Topics and Well Written Essays - 1250 Words)
Health Economics Charles E phelps, Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/miscellaneous/1607069-health-economics-charles-e-phelps.
“Health Economics Charles E phelps,, Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1607069-health-economics-charles-e-phelps.
  • Cited: 0 times

CHECK THESE SAMPLES OF Health economics Charles e phelps,,

Econimic Wealth and Happiness

Economic wealth and happiness Name: Instructor: Task: Date: Abstract In economic sense, economic wealth has a direct relationship with healthier living and happiness.... This is supported by several factors such as issues of proper expenditure of public funds in improving different sectors of the economy....
5 Pages (1250 words) Essay

The Public Needs to Know

The Public Needs to Know Name: Professor: Course: Date: The Public Needs to Know health and nutrition is an essential topic and area of concern to everybody.... More essentially, health and nutrition is a remarkable topic for children because of their growth.... Recently, the school made changes to the breakfast and lunch programs to improve nutrition and health mainly because of its importance to the children's growth, economic situation, special needs of the children, process and the benefits of the program....
4 Pages (1000 words) Essay

Economic Advantages of Free Trade

This means that more money is injected in the economy and it can also be used for developing other social amenities such as health, education as well as infrastructure.... This essay seeks to critically discuss the benefits of free trade to a particular country.... The essay explains the meaning of free trade and then focuses, on how this concept can foster economic development in member states....
5 Pages (1250 words) Essay

Changes in recent years to private health insurance

In the absence of health insurance, anyone could be caught in a serious financial problem in times of illness and accident.... Depending on the type of health insurance, its purpose is to help people cover their… There are many Australian citizens who are not covered with private health insurance.... The Australian Bureau of Statistics (ABS) stated that almost two-thirds or 64% of these people reported that they could not afford to purchase a health insurance or the costs of these insurances is too expensive....
4 Pages (1000 words) Essay

Tackling Childhood Obesity

Obesity and overweight in children are imperative public health problems encountered in the US health care setup.... According to a NHANES (National health and Nutrition Examination Study), survey in 2002, 16 percent of children between 6-19 years were overweight (CDC, 2009)....
7 Pages (1750 words) Essay

Advancement in Technology and High Leisure Hours

It means that with the advancement of technology, the populace should have more economic benefits than before.... Economic growth should be accompanied by… Betrand Rusell, one of great English philosophers praised idleness and in one of his writings he held that if society was to be managed in a better way than citizens would only need to work for four hours a day....
7 Pages (1750 words) Essay

Effect of Financial Management on HIV/AIDs Patients

  The following objectives guided the study: to determine how patients with HIV undergo their feeding programs, to assess the perception of the HIV patients themselves on their nutritional well-being, as well as that of the hospital stall concerning their health and other.... For policy, makers to efficiently perform their functions in the nation's approach to health and medical care neither by improved performance nor by actually targeting cost reduction efficiency a well-redesigned data system for conducting, analyzing, recording, interpreting resources productivity and data should be put in place to enhance the level of performanceMeanwhile, for better performance and providing highly recommendable services to the nation, advanced strategies are put in place....
9 Pages (2250 words) Essay

Marketing in the United Kingdom

In the paper "Marketing in The United Kingdom," economic conditions of U.... .... have been closely analyzed in order to determine which product shall be most suitable for this region.... An innovative product, electromagnetic dumbbells, would be launched in the U.... .... market.... hellip; The United Kingdom comprises of individuals belonging to different cultural backgrounds, with distinct taste or preferences....
17 Pages (4250 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us