The current iteration of health reform expects to expand consumer access to heal

Question

The current iteration of health reform expects to expand consumer access to health insurance. Keeping politics out of the conversation, describe what you think will happen to oneof the following items:

Again, let's leave politics for the talking heads on cable TV. Pick one of the items from the list above, state your position, and explain using economic concepts we have covered during the semester.

The current iteration of health reform expects to expand consumer access to health insurance. Keeping politics out of the conversation, describe what you think will happen to oneof the following items:

• Total demand for health care;
• Health care costs as a % of gross domestic product;
• The supply of health care services;
• Health insurance premiums; or
• The number of different health plans offered in the market.

Again, let's leave politics for the talking heads on cable TV. Pick one of the items from the list above, state your position, and explain using economic concepts we have covered during the semester.

Explanation / Answer

Ans ) As an effect to the health reform the consumer access to health insurance increases. Firstly we have to understand what is health insurance is , which is a person facing a health risk enter into the contact with the insurance company by paying a fee or premium and the insurance company agrees to agrees to accept all part of risk which includes the expensive medical treatment in case of health issues.1)The individuals with health insurance use more helath care products the reason is healthcare is cheaper for the insured and secondly because of the moral hazard the people will engaged in the unhelathy behaviour like smoking, alchohol inncrease consumption. hence the supply for and demand of healthcare servive increases.B) additinaly there would be increase in the number of different healthplans offered in the market.There will be rise in the price of the insurance premium as the price of insurance premium reflects the risk that the insurance company will face after the insurance is brought hence with increase in the market it also increases.Health care cost % of GDP = from the point of view of the economy the role of insurance is not only to eliminate risk or mitigate it but to spread the risk among the sstakeholders more efficiently ,the risk is not on a single individual but is shared among the thousands of insurance company shreholders also using insurance results in reduce health care cost hence healthcare cost as a percent to gdp declines. hoppe answer it

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