Econ 370

Intensive margin

What frequency should the test be given to those who are determined to need it

Extensive margin

Expanding or limiting who is getting a treatment

Health elasticity of medical spending

A measure of the marginal productivity of medical care spending in producing increases in life expectancy

Incremental cost-effectiveness ratio(CE)

Metric used to determine if a new medical intervention provides enough added benefit to justify its higher cost compared to an existing standard

Marginal productivity

The additional amount that is gained when the last input is added

Average productivity

Total output divided by the number of inputs

Lower marginal productivity

Higher CE (Incremental cost effectiveness) ratios signal

Quality-Adjusted Life-Year (qaly)

Metric that measures the benefit of medical interventions by combining both length of life and quality of life into a single, numerical index.

Disability-Adjusted Life Years (daly)

a standardized metric measuring the total burden of disease, representing the sum of years of life lost due to premature mortality (YLL) and years lived with disability (YLD)

Engel curve

Relationship between a household's income (on the y-axis) and the quantity of a specific good demanded

Flat per visit copays

Pre-defined dollar amount you pay for a specific, covered medical service at the time of your appointment

Coinsurance

Insurance policies where you pay a fixed percentage of a covered loss or service (

Indemnity Insurance

Pays the consumer a flat amount for each medical sercive consumed, with the amount preestablished in the insurance contract

Deductibles

Fixed amount that the consumer must pay before insurance payments are made

High deductible plans

Large deductible, and then typically full coverage for all expenses above the deductible

Complements

Is ambulatory care and hospitals subsitutes or compliments?

Ambulatory care

Medical care provided on an outpatient basis, allowing patients to receive diagnosis, observation, treatment, and rehabilitation services without an overnight hospital stay.

Arc elasticity of demand

A measure of the average responsiveness of the quantity demanded to a change in price between two distinct points on a demand curve, rather than at a single point

High

For high or low levels of coisurance does the patient take on more of the burden?

Incremental Cost-Effectiveness Ratio (ICER)

A key health economics metric calculating the additional cost per additional unit of health gain