Price Elasticity of Demand and Health Care Essay Example
Running Heading: Price Elasticity and Health Care
Price Elasticity of Demand and Health Care
Table of Contents I.
II. Introduction
III. Measure of Health Care Demand
IV. Price Elasticity of Demand for HealthCare
V. RAND Study
VI. Health Care Trends in 2007
VII. Summary
Introduction The Health Care System in the U.S continues to be a topic of debate as the cost for
health care continue to grow. Many Americans are being forces to change the way they use the
health care system as the costs rising faster than their income. More than 6 in 10 Americans with
health insurance coverage indicate that the costs they are responsible for paying under their plan have
increased in the past year. This paper examines the elasticity of demand for health care
services.
Measure of Health Care Demand The demand for health care is often measured by the quantity of services used such as the number of doctor visits, prescriptions filled or inpatient hospital stays. The demand is also measured by the total costs of the services. The cost of health care for the consumer usually depends on the amount of premiums, deductible, and coinsurance or copayments that they are required to contribute. The amounts can vary and this can make it difficult to estimate the price elasticity of demand for health care services. In order to gage the effect of price changes, the researcher would need to determine the effective price that a consumer is willing to pay for an additional unit of health care services.
Elasticity of Demand for Health Care The price elasticity of demand measures the percentage change in quantity demanded
resulting from a 1 percent change in price. The elasticity of demand for a product or service will
vary depending on the level of price and quantity at which it is evaluated. The elasticity of
demand can vary depending on the different combinations of price and quantity
Price Elasticity of Demand and Health Care
Table of Contents I.
II. Introduction
III. Measure of Health Care Demand
IV. Price Elasticity of Demand for HealthCare
V. RAND Study
VI. Health Care Trends in 2007
VII. Summary
Introduction The Health Care System in the U.S continues to be a topic of debate as the cost for
health care continue to grow. Many Americans are being forces to change the way they use the
health care system as the costs rising faster than their income. More than 6 in 10 Americans with
health insurance coverage indicate that the costs they are responsible for paying under their plan have
increased in the past year. This paper examines the elasticity of demand for health care
services.
Measure of Health Care Demand The demand for health care is often measured by the quantity of services used such as the number of doctor visits, prescriptions filled or inpatient hospital stays. The demand is also measured by the total costs of the services. The cost of health care for the consumer usually depends on the amount of premiums, deductible, and coinsurance or copayments that they are required to contribute. The amounts can vary and this can make it difficult to estimate the price elasticity of demand for health care services. In order to gage the effect of price changes, the researcher would need to determine the effective price that a consumer is willing to pay for an additional unit of health care services.
Elasticity of Demand for Health Care The price elasticity of demand measures the percentage change in quantity demanded
resulting from a 1 percent change in price. The elasticity of demand for a product or service will
vary depending on the level of price and quantity at which it is evaluated. The elasticity of
demand can vary depending on the different combinations of price and quantity