According to the website of the Center for Medicare and Medicaid Services (CMS.g
ID: 2806743 • Letter: A
Question
According to the website of the Center for Medicare and Medicaid Services (CMS.gov), “Medicare is a health insurance program for: people age 65 or older, people under age 65 with certain disabilities, and people of all ages with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a kidney transplant).”
Why might the government need to intervene in the private health insurance market on behalf of such individuas? Explain.
Why did the expansion of health coverage under the Affordable Care Act (i.e. new enrollees, elimination of pre-existing conditions, children staying on their parent’s coverage until age 26, etc.) necessitate the mandate that individuals must purchase health insurance or pay a fine? Explain.
Does the government provision of health insurance present any potential unintended consequences (i.e. are there any potential issues with how individuals might choose to incur health care costs once the become fully insured)? Explain.
Explanation / Answer
The government may need to intervene in the private health insurance market on behalf of such individuals because they may have not anticipated their healthcare costs and may have not insured themselves.
The expansion of health coverage under the Affordable Care Act necessitate the mandate that individuals must purchase health insurance or pay a fine because individuals may otherwise anticipate that the government will provide them healthcare and not insure themselves, that is, there is a distortion of incentives.
The unintended consequence may be that the insurance industry may increase the premiums too much because individuals have no choice but to purchase.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.