Lectures_micro / Microeconomics_presentation_Chapter_19
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The U.S. Welfare State
An in-kind benefit is a benefit given in the form of goods or services.
A negative income tax is a program that supplements the income of low-income working families.
The Effects of the Welfare State on Poverty and Inequality
The Effects of the Welfare State on Poverty and Inequality
The American welfare state is redistributive.
It increases the share of income going to the poorest 60% while reducing the share going to the richest 20%.
The Economics of Health Care
Health insurance satisfies an important need because expensive medical treatment is unaffordable for most families.
Under private health insurance, each member of a large pool of individuals pays a fixed amount to a private company that agrees to pay most of the medical expenses of the pool’s members.
Who Paid for U.S. Health Care in 2006?
Private Insurance
34%
Medicare
19%
Out of pocket 12%
Other public
12%
Medicaid
15%
Other private 7%
Who Paid for U.S. Health Care in 2006?
The majority of Americans not covered by private insurance are covered by:
Medicare, which is non-means-tested and applies only to those age 65 and older, and
Medicaid, which is available based on income.
The Economics of Health Care
The Consequences of Being Uninsured
(a) 2003 (b) The Medical Bills, 2003
Had problem paying medical bills
Changed way of life significantly to
pay medical bills
Contacted by collection agency about
medical bills
because of |
Percent |
cost |
|
Percent
Health Care in Other Countries
The United States differs from other wealthy countries in its heavy dependence on private health insurance and its high health care spending per person.
Compared to other wealthy countries, the U.S. system has much higher costs.
The higher costs do not necessarily imply better care.
Health Care in Other Countries
Some countries, such as Canada, have a singlepayer system.
A single-payer system is a health care system in which the government is the principal payer of medical bills funded through taxes.