PUBH 3130 Lecture Notes - Lecture 16: Patient Protection And Affordable Care Act, Hierarchical Organization, Exosphere
Document Summary
Health economics can be used to evaluate whether. Linking economics to policy a policy is working as planned a policy revision is needed a new policy is needed to address a disparity or unmet need a policy has unintended consequences. Health economics questions related to the affordable care act. General economic assumptions: utility is a function of an individual"s health and the other goods and, individuals want to maximize utility. services one has. Implication individuals want to purchase more health-related goods and services to achieve better health status and maximize utility. General economic assumptions: individuals maximize utility subject to their budget constraints, producers want to minimize the cost of production, in a perfectly competitive market, individual sellers take the price from the market. Pricing in healthcare markets is different from other markets. Prices are not determined by consumers or producers. Prices are often determined by payers insurance companies, medicare, medicaid, and other institutions.