Moving to a managed care insurance plan in Green Cross

As a health administrator for your employer with the long name (Green Cross etc), you need to discuss with the board of directors about health insurance and why the company is thinking of moving to a managed care insurance plan. You decide that providing an overview of health economics and the demand for health insurance is the best way of going about this. As a way of preparing for the meeting, Please answer the following questions: 1) Explain the expected utility model (traditional), and how consumers benefit from pooled risk. How does risk aversion come into play? PG 161 & 166 2) How and which factors affect the demand for health insurance? Tie these concepts back to the demand for medical care, and demand for health. PG163 3) Discuss the concepts of income transfer, and moral hazard in the contexts of Nymans Expected utility model. PG 172 &173; Now you want to discuss the relationship between the above health economic concepts and the new managed care plan. 4) The employer wants to expand plans; discuss the differences and advantages of each type of MCO in relation to your topic of interest. PG 175 5) How can various financial incentives affect patient utilization of medical care, as well the company’s revenue, concerning your topic of interest. PG 176 &177; 6) The board of directors want you to explain about consumer directed health plans. What are they? How would they affect your topic of interest, from the patient and insurer’s perspective? What are the key incentives? PG 179 Bonus points (3): Why is this a key point of health care reform?