Health Plan Principles Cowen, T. Article Review

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Part D -- Both articles show us that reform is crucial to fixing the American health care system. Right now, it is buried under insurance monopolies, supply side dynamics and government institutions that fail to regulate, or compensate, for promised care. Using a model of externalities, the healthcare system should, in fact, result in a system in which pricing was not a motive for care, and would not require the consumer to hold the burden of propping up the system.

Part E -- Marginal means the margins of the existing state of the health care market; what cost or benefit that might change if the allocation of resources were to change. If one good or service, for instance, was changed then it would affect other units or services. The way that marginality focuses on health care benefits, for instance, is looking at the costs of preventative care vs. chronic or emergency care. At the onset, preventative care programs may seem to be more costly, and result in more initial fiscal investment.

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This is because those costs are incremental, while the costs for chronic or emergency care are not regular, nor are they separated from other costs incurred for the general population. When using economic analysis, it is necessary to weigh the overall benefits of fiscal investment based on a given time period over a larger population. For example, if an Educational Program that focused on nutrition and combatting obesity cost the government $1 million in a fiscal year, and then analysis of that year was done on the costs of diabetes, heart-issues, respiratory issues, etc., one would hope that more than $1 million was saved based on the intervention.

REFERENCES

Cowen, T. Goodwin, (n.d.) Public Goods and Externalities. The Library of Economics

And Liberty. Retrieved from: e:/wcom teaching@butte econ externalities

definition (cee).doc

N., et al. (2007). Externalities. Encyclopedia of Earth. Retrieved from e:/wcom teaching@butte econecon 04 microexternalities!encyc of earth.doc.....

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