Relative financial burden imposed on each income earner

by | Aug 23, 2023 | economics

 

 

You are a member of a presidential commission appointed to consider a mandatory national health insurance plan, and the question of how to fund the plan is being discussed.
Specifically, three distinct funding mechanisms are being considered to cover the cost of the plan. Each mechanism will generate approximately $4,000 per year on average per income earner. The funding mechanisms include:
Think about funding plans from the perspective of three workers:
A flat rate premium
A doubling of the current 7.65% Social Security payroll tax
A 7% increase to income tax
Consider these three funding mechanisms from the perspective of three different representative income earners:
A. Person A – earns $25,000 per year
B. Person B – earns $25,000 per year with an additional $1,000 in investment income
C. Person C – earns $85,000 per year with an additional $10,000 in investment income
Create a simple 3×3 matrix that outlines the considerations for each combination of funding mechanism (1, 2, 3) and income earner (A, B, C) to guide your thoughts. Based on these considerations, answer the following questions:
Which of the three funding mechanisms (1, 2, 3) do you support, and why?
Be sure to describe the relative financial burden each funding mechanism imposes on each of the income earners.
How has the emergence of different types of health insurance plans (e.g. HMO, PPO, EPO, POS, HDHP) affected trends in demand for health care services?
List and describe various economic and societal factors that affect demand and pricing for health care services in today’s market
Submit your 3×3 matrix

 

Sample solution

Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell. 

In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.


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God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.

Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.

To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.

 

References

Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.

Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.

Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.

Sample Answer

Sample Answer

 

Income Earner Funding Mechanism 1 Funding Mechanism 2 Funding Mechanism 3
A – $25,000/year Flat rate premium of $4,000 Social Security payroll tax of 7.65% + $4,000 Income tax increased by 7% + $4,000
B – $25,000/year + $1,000 investment income Flat rate premium of $4,000 Social Security payroll tax of 7.65% + $4,000 Income tax increased by 7% + $4,000
C – $85,000/year + $10,000 investment income Flat rate premium of $4,000 Social Security payroll tax of 7.65% + $4,000 Income tax increased by 7% + $4,000
Based on the considerations outlined in the matrix, my support would be for Funding Mechanism 1: a flat rate premium of $4,000 for all income earners.

Here is the rationale for this choice and the relative financial burden imposed on each income earner:

Person A – With an income of $25,000 per year, a flat rate premium of $4,000 would represent a significant financial burden. It would amount to 16% of their annual income. However, the other two funding mechanisms would impose an even higher relative burden on Person A.

Person B – Person B also earns $25,000 per year but has an additional $,000 in investment income Similar to Person A, a flat rate premium of $4,000 would represent a portion of their income (16%). The other two funding mechanisms would a similar or higher relative burden on Person B3. Person C – With an income of $85,000 per year and an additional $10,000 in investment income, a flat rate premium of $4,000 would represent a smaller proportion of their income (4.3%). The other two funding mechanisms would impose a higher relative burden on Person C.

Overall, while a flat rate premium of $4,000 may seem burdensome for lower-income earners like Person A and Person B, it is the most equitable option among the three funding mechanisms considered. It avoids disproportionately burdening lower-income individuals who may already be financially strained.

The emergence of different types of health insurance plans (e.g., HMO, PPO, EPO, POS, HDHP) has affected trends in demand for health care services in several ways:

Managed care plans like HMOs (Health Maintenance Organizations) and EPOs (Exclusive Provider Organizations) typically offer more limited networks of healthcare providers and require referrals for specialist care. These plans aim to control costs by managing access to healthcare services and promoting preventive care.

Preferred Provider Organizations (PPOs) offer more flexibility in choosing healthcare providers, both in-network and out-of-network. PPOs generally have higher premiums but allow individuals to seek care from a broader range of providers without requiring referrals.

Point of Service (POS) plans combine features of HMOs and PPOs, allowing individuals to choose between managed care or self-referral options for healthcare services.

High Deductible Health Plans (HDHPs) are characterized by lower premiums but higher deductibles. These plans are often paired with Health Savings Accounts (HSAs), which allow individuals to save pre-tax funds for medical expenses.

These different types of health insurance plans have influenced the demand for healthcare services by affecting access to providers, costs to patients (premiums, deductibles), and the level of control individuals have over their healthcare choices.

Various economic and societal factors affect demand and pricing for healthcare services in today’s market. Some key factors include:

Aging population: As the population ages, there is an increased demand for healthcare services due to age-related illnesses and chronic conditions.

Technological advancements: Advances in medical technology have led to new treatments and procedures, increasing the demand for these services but also driving up costs.

Health insurance coverage: The availability and affordability of health insurance coverage impact individuals’ ability to seek and pay for healthcare services.

Government policies: Government policies related to healthcare funding, reimbursement rates, and regulations can influence demand and pricing in the healthcare market.

Socioeconomic factors: Income levels and disparities, education levels, and cultural beliefs all play a role in healthcare utilization patterns and the demand for certain services.

Pharmaceutical industry: The development and pricing of medications can significantly impact healthcare costs and access to certain treatments.

These factors interact in complex ways within the healthcare market, shaping both the demand for services and the pricing structures in place. Understanding these dynamics is crucial when considering policy decisions and designing healthcare systems that balance access, quality, and affordability.

 

 

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