History of Health Insurance
This term refers to evaluating an individual’s health risk to determine eligibility or premiums for insurance.
What is medical underwriting?
This term describes a situation where the demand for a good does not significantly change when its price increases.
What is inelastic demand?
This is the first and most critical step in Bardach’s Eightfold Path, and if done poorly, the entire analysis collapses.
What is define the problem?
This 2010 law requires that increases in mandatory spending or tax cuts must be offset by spending cuts or increased revenue.
What is the Statutory Pay-As-You-Go (PAYGO) Act?
This theory describes policy change as slow, gradual adjustments over time.
What is incrementalism?
What other theory does this one compare to?
Who are the main authors?
What type of essay question might I ask?
This type of health plan, known for lower premiums and higher out-of-pocket costs, raises concerns about adverse selection.
What is a high-deductible health plan?
The cost of producing one additional unit.
What is marginal cost?
These two elements force policymakers to weigh competing priorities like cost vs. equity and are essential for strong policy recommendations.
What are trade-offs and evaluative criteria?
When a product is not sensitive to price changes, it is described as this.
What is inelastic demand?
This theory explains long periods of stability interrupted by sudden major policy shifts.
What is punctuated equilibrium theory?
What other theory does this one compare to?
Who are the main authors?
What type of essay question might I ask?
This type of health insurance plan imposes the strictest rules on which providers a patient can see.
What is a health maintenance organization (HMO)?
When individuals consume care without paying, expecting others to cover costs.
What is free riding?
This key distinction separates incrementalism from punctuated equilibrium: one emphasizes gradual change, while the other explains sudden policy shifts after long stability.
What is the pattern of policy change (gradual vs. punctuated)?
According to fiscal federalism, this level of government is best suited to provide services with localized benefits.
What are local governments?
In this model, problems, solutions, and decision-makers are matched randomly.
What is the Garbage Can Model?
Who are the main authors associated with this theory?
How might I ask a question about this theory?
This part of Medicare, also known as Supplemental Medical Insurance, covers outpatient services and preventive care.
What is Medicare Part B?
A valued impact on a third party not involved in a transaction.
What is an externality?
Policy change becomes most likely when these three streams align, creating a window of opportunity.
What are the problem, policy, and politics streams?
This market failure occurs when one party has more or better information than another, leading to inefficient outcomes.
What is asymmetric information?
This framework suggests policy change occurs when problem, policy, and politics streams align.
What is Kingdon’s Multiple Streams Framework?
What other theory does this one compare to?
Who are the main authors?
What type of essay question might I ask?
Healthy individuals choosing not to purchase insurance but still receiving care when needed are known as this group.
What are free riders?
This occurs when high-risk individuals are more likely to enroll in insurance.
What is adverse selection?
This metric is used in cost-effectiveness analysis to compare two policies by examining additional cost per additional health benefit.
What is the Incremental Cost-Effectiveness Ratio (ICER)?
According to this classical economist, individuals make market decisions by maximizing their own utility through rational self-interest.
Who is Adam Smith?
This model assumes individuals make decisions by maximizing utility through rational self-interest.
What is Adam Smith’s classical economic theory?