Name of instructor:
Deborah Cleveland
MSCC course number and title:
Econ 2020 Microeconomics
A comparison study of healthcare between the United State and other countries.
Description of international module:
This international module will compare the U.S. health care model to other health care models in other countries. Students will be assigned a country and then compare the two models and come up with solutions on how to fix the U.S. model.
Objectives and intended international student learning outcomes of the international module:
Objective 1: Students in internationalized classes will develop greater knowledge of cultures other than their own and the impact of diverse cultural perspectives on world events.
Students Learning Outcomes (Knowledge)
1a. Students will increase their knowledge of cultures in the world around them, in particular how other cultures view healthcare.
1b. Students will recognize the role that differing cultural perspectives play in shaping world events, in particular the vast differences of healthcare costs as part of the gross domestic product for other countries.
Objective 2: Students in internationalized classes will acquire increased understanding of the international aspects of the respective subject area/course discipline.
Student Learning Outcomes (Comprehension)
2b. Students will describe how the course-related international content impacts their own occupational/professional development and how other countries healthcare systems impacts their understanding of healthcare issues in the United States.
Objective 3: Students in internationalized classes will demonstrate an awareness and understanding of the interdependency and consequences of international events and issues..
Student Learning Outcome (Application)
3a. Students will recognize how events in other nations affect the United States and how events in this country affect other nations and how differences in perception can be the result of cultural factors.
3b. Students will articulate the perspectives of other cultures and nations when analyzing world events, as related to healthcare spending and quality between the United States and their respective countries.
Outline of Lectures/Discussions Used to Implement the Module
A sample lecture is provided. However; it is up to the Professor to decide how they want to present the material.
The Economics of Health Care
1. Health Care accounts for 16% of U.S. GDP and 10% of total employment, making it worthy of specific studies.
2. The Health Care Industry:
a. Boundaries are not precise
b. One of the largest U.S. industries
c. Employs 9 million people
3. Twin Problems: Cost and Access
a. The cost of health care keeps rising. Estimated growth 7.3 % over the next 10 years.
b. 46 million Americans do not have health insurance. Goal is to make health care accessible to everyone.
4. Total spending on health care
a. Four-fifths of health care spending is financed by insurance
b. Deductibles: the insured pays the first $250 or $500 of each year’s health care costs before the insurer begins paying.
c. Copayments: the insured pays, say, 20% of all health care costs and the insurance company pay 80%.
d. Medicare is a nationwide federal health care program
e. Medicaid provides payment for medical benefits to certain low-income people
f. (TANF) Temporary Aid for Needy Families and (SSI) Supplemental Security Income are 2 programs with families that are automatically eligible for Medicaid
g. 20% of each dollar spent on health care is financed by direct out-of-pocket payments by individuals
h. GDP keeps rising
5. International Comparisons
a. GDP is highest in the U.S.
b. Quality of Care: Are we Healthier than the rest of the world? Hard to compare health care between countries, medical care is probably the best in the U.S., U.S. best technology in the world, some things haven’t improved, such as: breast cancer, Aids, and tuberculosis, and other nations rank higher than the U.S. in fixed life expectancy, maternal mortality and infant mortality.
6. Labor market Effects
a. Slower wage growth
b. Use of part time and temporary workers
c. Outsourcing and off shoring
7. Personal Bankruptcies
a. Large uninsured medical bills are one of the major causes of personal bankruptcy
8. Impact on Government Budgets
a. Federal, state and local governments are negatively affected by spiraling and unpredictable health care expenditures
b. Many states have been forced to raise taxes to cover their Medicaid bills.
9. Too Much Spending
a. Health care has improved but economists think that health care expenditures are too large in the U.S.
10. Limited Access
a. Health care is limited and costs continue to rise
b. The poor is more likely not to be insured
c. Smaller firms and low wage workers are more likely not to have insurance
11. Peculiarities of the health care market
a. Ethical and equity considerations, asymmetric information, positive externalities, third-party payments: insurance
b. There is an increasing demand for health care
c. The U.S. population is aging which requires more health care
12. Unhealthy lifestyles
a. Can drive up health care costs
b. Alcohol, tobacco, and other drugs
c. Obesity
13. Supplier Induced Demand
a. Fee-for-service basis: paid separately for each service performed
b. Surgery: doctors in the U.S. are paid a fee for each operation performed
14. Defensive medicine: Doctors recommend more tests and procedures than needed to cover themselves
15. Medical Ethics:
a. Doctors are ethically committed to use “best practice” techniques for their patients
b. Public values seem to support medical ethics
16. Less Prevention:
a. Some people are more inclined to smoke, avoid exercise, and eat unhealthy when they know they have health insurance
b. Some people will take up dangerous activities when they know they have health insurance such as skydiving
17. Overconsumption
a. Insured people may agree to more test and complex treatment if they have insurance
b. Insured people tend to overuse the system
18. Government Tax Subsidy
a. Government tax subsidy strengthens the demand for health care services.
Student Evaluation/Testing Regarding the Module
A term paper will be written comparing the U.S. healthcare system to another countries healthcare system. Students will compare the two models and come up with solutions on how to fix the U.S. model. The assignment grading weight will be 20% of the student’s final grade.
Effectiveness Standard
70% of students will score 3 or higher on each student learning outcome.
Resources (Bibliography) Used to Develop-Implement the Module
Miller, Roger Leroy, Economics Today. 15 edition, Addison-Wesley Pearson.