Post by: lingual on Nov 23, 2022
The graph shows the supply and demand curves for health care in a country that has universal coverage and a single payer.
Assume that P1=$0, P2=$150, P3=$440, Q1=160, Q2=530, and Q3=895. In a universal coverage, single payer system everyone is covered by health insurance with no exceptions and no excluded preconditions and the government pays for all healthcare bills. This type of system results in a ________ (surplus/shortage) of ________.
◦ surplus, 365
◦ shortage, 365
◦ surplus, 370
◦ shortage, 370
Post by: RodrickHac on Nov 23, 2022
In a universal coverage, single payer system everyone is covered by health insurance with no exceptions and no excluded preconditions. The government pays for all healthcare bills and consumers pay $0.
Because the government pays all bills, they determine how much health care to supply. In this example, the government supplies Q2=530 medical services.
At a price of $0, Q3=895 medical services are demanded and Q2=530 medical services are supplied, which creates a shortage of medical services.
The shortage equals quantity demanded - quantity supplied = 895 - 530 = 365.