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Economics DeMYSTiFieD by Eric Dodge, Melanie Fox

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chapter 19Health Economics and the Market for Health Insurance

The healthcare industry has recently garnered a great deal of attention during the debates leading up to the passage of the Patient Protection and Affordable Care Act of 2010 (PPACA 2010, but sometimes also just called the Affordable Care Act). However, much of the debate and public discourse on this act indicates that, by and large, the public does not understand how this industry works. In this chapter, we examine the markets for health and healthcare. We start by discussing why healthcare in the United States is financed differently from the way it is financed in any other country. We continue by explaining why we have to reexamine our assumptions about markets and the consequences ...

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