Health Economics, business and finance homework help

Health Economics, business and finance homework help

Please — your answer to this question must be no more than two paragraphs! One paragraph is probably enough. Your answer should be short and to the point. You must upload your answer in a MS Word file.

In Chapter 12 of FGS, a brief history of the growth of HMOs is provided. Without the passage of the Health Maintenance Organization Act of 1973 and subsequent legislative revisions, it is questionable whether HMOs — and their cousins, PPOs and POSs — would ever have gained traction in the market. In less than 25 years, health plan enrollment of covered workers went from 73% in FFS plans to just 1%.

More recently, high deductible plans (HDHPs) have blossomed, coming seemingly out of nowhere to no accounting for about 13% of covered workers. Why? The following article from Kaiser Health News & the Washington Post suggests that an effort by employers to cut costs is the reason: (click HERE for the article)

Do you agree? If we assume that firms are profit maximizers, then we also must assume that they are cost minimizers (at a given level of output). Why would employers suddenly wake up and start adopting HDHPs?

http://khn.org/news/high-deductible-health-insuran…

INCLUDE REFERENCES . BELOW IS THE LINK FOR THE ATTACHED ARTICLE