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Medical insurance and consumption levels of medical services

Instructions: There are 2 responses. Write a 100 word response for each.

Response 1:) Ora

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The consumption levels of medical services all boils down to whether health care rationing is going to be undertaken by government officials or instead by individuals making their own decisions with their own money. Most systems of medical insurance are normally done through government health cares seeing that medical costs can be very high. If medical insurance were to lower the out-of-pocket costs consumers have to pay for additional units of physical services and hospitalization, this would help out consumers in a big way as well as the medical insurance. This affects the consumption level of medical services because they do not get as much as they would by lowering these costs. With most insurance companies, there’s a deductible that has to be paid before any medical services are paid, so by them lowering the out-of-pocket costs, it’s messing with the money they collect.

Yes, I do believe that this method of organization would result in too much consumption of medical services. Since many consumers may have lower out-of-pocket costs, they may feel that they can just go to the hospital or get physician care for just minor issues. They may take advantage of not having to pay a lot just for these services. Since they bills may not be as high, things that don’t even really require a physician, they may still go.

Numbers 32: 13 says “and the anger of Jehovah burneth against Israel, and He causeth them to wander in the wilderness forty years, until the consumption of all the generation which is doing the evil thing in the eyes of Jehovah.” Our Lord dislikes consumption, so we should want to follow him regarding consumption in any type of way. In this instance, the consumption of medical services, especially when they are just trying to help in regards to price.

Response 2:) Ms. Durham

After watching the video, price can be a good rationing device in the market because it helps solve the shortage, meet the demand and satisfy the requirements of innovation. The video explains to us that there is no reason to know why a price is high or low but having something that produces the greater profit results in good outcomes. Since the market is changing all the time, prices are a way of condensing all the information into one easily understood signal. So it is better to know the price of something then to know the information about how much something should cost.

The video talked about two farmers, Al Trewis and Moe Cashferme, who both had 500 acres each. In the beginning, they were both asked was they going to plant soybeans or corn. In the end, Al planted the corn because he just wanted to do what was best for humanity. Moe planted soybean becacuse he only cared for profits. Although Moe was very selfish and did it all for the money, I still believe that he did what was best for society. Society was in a shortage of soy which made it such a big value. People needed more soy and that is exactly what Moe gave them, even though he didn’t have that in mind.

Ecclesiastes11:4 says “Farmers who wait for perfect weather never plant. If they watch every cloud, they never harvest.” If Al would have just focused on what he knew best, farming, then he would have profited better instead of going after something he didn’t.

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