What would be the appropriate role for the government in controlling the projected rise in national health spending?

Part I

The Center for Medicare and Medicaid Services (CMS) has shared their projections for National Health Expenditure for the period 2017-2026. In their forecast summary of major findings (see attached) they have identified four drivers of projection in national health spending.

1.      
Choose two drivers from this list of four. For these two identified drivers –

a.      
How is the supply AND demand for hospitals affected? Use appropriate figures to identify and explain the separate effects of your two chosen drivers. (20 points)

b.      
What would be the appropriate role for the government in controlling the projected rise in national health spending? (10 points)

2.      
The share of the insured is projected to decline. This decline, given growth in population, will adversely affect health care equity. What steps would you propose to improve health care equity? (10 points)

3.      
Given the ongoing mergers and acquisitions in the health care system, there is concern that this has provided greater market power to hospitals and this allows them to set higher prices which in turn is fueling the rise in health care spending. Use an appropriate figure to describe why concentration of market power might lead to higher prices being charged by hospitals. (10 points)

4.      
In order to better control the rise in healthcare spending, CMS is considering undertaking an economic evaluation. What kind of economic evaluation would you propose to better reflect cost considerations as well as the effects of interventions? Why did you choose this specific economic evaluation? (5 points)

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