Understanding the Intersection of Medicaid and Work HW

Understanding the Intersection of Medicaid and Work HW

Understanding the Intersection of Medicaid and Work HW

a. The article titled “Understanding the Intersection of Medicaid and Work” states that 51% of non-elderly (i.e., 19-64) able-bodied adults in Medicaid (most of them eligible given the ACA Medicaid expansion option) are working full-time for the entire year. The article also states that 40% of the Medicaid individuals that are working, are employed by small firms and are involved in agriculture and service industries. The income eligibility threshold to qualify for Medicaid is very low (approximately $16,000 per year), do you think these individuals could purchase insurance in the private market? Why?

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c. Yes/No question: Does Medicaid provide cash assistance to beneficiaries?

2. Medicare Questions

a. According to the article titled “Budget Explainer: Medicare”, in 2017, 42% of Medicare costs will covered by general federal revenue (i.e., general federal taxes) as opposed to payroll taxes, premiums, and other receipts in 2017. What does this mean in the sense of how much the federal government (i.e., tax payers) is financing care for the Medicare beneficiaries?

b. Given your response in 2.a., do you consider Medicare to be a socialist-like program? Independent of your response, do you support continuation of the Medicare program? (for purposes of this question, assume the program will be solvent).

c. Yes/No question: are the majority of individuals who are 65 or older covered by Medicare?

3. a. Are you in favor of the federal government subsidizing private insurance for low-income individuals in the health insurance exchange? Why? If you support the Medicare program but do not support the health insurance exchange subsidies, please explain your rationale.

b. What two population groups within Medicaid are responsible for the largest program expenditures? Is there a realistic way to reduce the expenditures for these two groups? (hint: check Exhibit 9.1. in p. 120 of book)

4. Some people argue that free market competition would resolve all the problems of our health care system. This theory assumes that the healthcare approximate a “perfect market.” After reading Chapter 20 and the article titled The Imperfect Health-Care Market:

a. Do you think our health care system is a “perfect” or an “imperfect” system? (the question calls for your response in regard to the economic term (i.e., perfect market); we already know the system isn’t perfect).

b. Independent of your response in 2.a., do you think that the traditional market forces without any government regulation can resolve the problems with our healthcare system? Why?

Each question will need a paragraph, except the ones that say yes/no answer.

This is the link for the article:




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