Week 2 Discussion

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Before beginning work on this discussion forum, please review the link “Doing Discussion Questions Right,” the expanded grading rubric for the forum, and any specific instructions for this topic.

Before the end of the week, begin commenting on at least two of your classmates’ responses. You can ask technical questions or respond generally to the overall experience. Be objective, clear, and concise. Always use constructive language, even in criticism, to work toward the goal of positive progress. Submit your responses in the Discussion Area

You are a member of a presidential commission appointed to consider a mandatory national health insurance plan, and the question of how to fund the plan is being discussed.

Specifically, three distinct funding mechanisms are being considered to cover the cost of the plan. Each mechanism will generate approximately $4,000 per year on average per income earner. The funding mechanisms include:

Think about funding plans from the perspective of three workers:

1. A flat rate premium

2. A doubling of the current 7.65% Social Security payroll tax

3. A 7% increase to income tax

Consider these three funding mechanisms from the perspective of three different representative income earners:

· A. Person A – earns $25,000 per year

· B. Person B – earns $25,000 per year with an additional $1,000 in investment income

· C. Person C – earns $85,000 per year with an additional $10,000 in investment income

Create a simple 3×3 matrix that outlines the considerations for each combination of funding mechanism (1, 2, 3) and income earner (A, B, C) to guide your thoughts. Based on these considerations, answer the following questions:

· Which of the three funding mechanisms (1, 2, 3) do you support, and why? Be sure to describe the relative financial burden each funding mechanism imposes on each of the income earners.

· How has the emergence of different types of health insurance plans (e.g. HMO, PPO, EPO, POS, HDHP) affected trends in demand for health care services?

· List and describe various economic and societal factors that affect demand and pricing for health care services in today’s market

Submit your 3×3 matrix along with your responses to the discussion questions.