PUP-3002 Lecture Notes - Lecture 15: Moral Hazard, Patient Protection And Affordable Care Act, Risk Pool
5 Apr 2018
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Ch 7 health policy endogeneity, moral hazard and adverse selection. Healthcare the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in human beings. Healthcare system the organization of people, institutions, and resources that deliver health care services to meet the health needs of target populations. Health providers can create demand for their services. Low barrier to care for the insured (e. g. , a co- pay for a hospital visit) Policy makers worry that providers may induce unnecessary demand, which increases spending. People purchase health insurance to pay for medical bills if they arise. The price of insurance coverage varies from individual to individual based on their risk profile. Risk pool the set of individuals covered by insurance. When people purchase insurance they may act in a more reckless manner than if they did not have it. Example: now that i have health insurance, i can finally learn to cliff dive.
