Chapter 33 - Assignment 2: Medical Savings Accounts
Chapter 33 - Assignment 2: Medical Savings Accounts
Read the article on "
The Economic Case for Medical Savings Accounts," by John C. Goodman and Gerald L. Musgrave.
- How does the government subsidize third-party insurance?
- Why does the current tax system result in distortions?
- Why might the existence of third-party insurance lead to higher levels of utilization of medical services?
- While HMOs tend to lower the cost of medical services, the authors argue that HMOs induce a
distortion in consumer choice. Explain.
- Do you find their argument in support of medical savings accounts convincing? Why or why not?
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