The U.S. government currently spend $475,909,674,990.00 a year on the Medicaid program. There are 82 Million households that receive Medicaid. Providing low income Americans with free health insurance is intended to improve their economic well-being. We can understand this better by showing improvements in a typical low-income family's budget possibilities. Please illustrate with a well-labeled budget constraint graph how the consumption possibilities of health insurance (HI) and all else (Y) expand for a family when Medicaid is introduced, through parts a) above d) below. As we have done in class, Assume that P(Y)=$1; P(HI)=$1 and family income is $20,000 a year. (b) Using the amount from (a), show how the budget constraint of a family (showing Y and HI) changes when they are given Medicaid.
The U.S. government currently spend $475,909,674,990.00 a year on the Medicaid program. There are 82 Million households that receive Medicaid. Providing low income Americans with free health insurance is intended to improve their economic well-being. We can understand this better by showing improvements in a typical low-income family's budget possibilities. Please illustrate with a well-labeled budget constraint graph how the consumption possibilities of health insurance (HI) and all else (Y) expand for a family when Medicaid is introduced, through parts a) above d) below. As we have done in class, Assume that P(Y)=$1; P(HI)=$1 and family income is $20,000 a year. (b) Using the amount from (a), show how the budget constraint of a family (showing Y and HI) changes when they are given Medicaid.
