Course Syllabus Department of Economics University of Connecticut

Introduction to Health Economics Spring 2018

Instructor: Tianxu Chen E-Mail:tianxu.chen@uconn.edu

Every student is responsible for reading and understanding the content of this course outline.

Course Description This course is an introduction to the field of health economics. Health economics is an active field of microeconomics with a large and growing literature. In the past decade, some of the most controversial policies considered by state and federal governments have involved issues that have been analyzed by health economists. This class will provide an introduction to the health care system in the U.S. We will discuss some of the key concepts that health economists use to analyze health care markets. Finally, we will apply these concepts to selected current issues in health policy.

Prerequisites: Students should have a firm grasp of microeconomics at the level of Intermediate Microeconomics. Students should also be comfortable with basic concepts in statistics. Much of the literature in health economics requires that readers be conversant in the language of statistics and econometrics, so we will review these as necessary.

Class Information

Lecture time: Tuesday, Thursday 14:00 - 15:15

Location: OAK 101

Teaching Assistant(s): Zhonghui Zhang (zhonghui.zhang@uconn.edu )TA Office Hours: Monday 11:00-12:00 , Oak Hall 336b

Course Website

- Lecture notes, problem sets, answer keys, additional readings, and other useful information will be posted on the HuskyCT course website.

- Important announcements will be posted on the HuskyCT course website. Students are advised to check frequently.

Texts/Materials

Textbook (Strongly Recommended): The Economics of Health and Health Care", 8th Edition by Folland, Goodman, and Stano ( earlier editions also work)To get the textbook, please check http://www.facultybookshelf.org/course/14739

Office : OAK 348

Office Hours : Tuesday, Thursday 15:30-16:30

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Grading Scheme There will be 2 in-class Midterms (20% each).

There will be 4 Problem Sets (20% totally) and one cumulative Final Exam. (40%)

• Homework

There will be four homework assignments, which are comprised of multiple choice and short-answer questions. Students could work in groups (four students at most for a group), and each student must, however, provide their own answers as sepearte ones. Everyone i n the group may not receive the same grade if the answers provided are different (sometimes typos). The goal of this setup i s to make sure everyone i s participating and make sure everyone i n the group i s on the same page. Students should be responsible for giving me the problem sets on time. I allow students to hand in later homework before the solution is posted, and the late homework will get a 10% off discount for its grade. Late homework will not be accepted after the solution is posted on HuskyCT! If there are some medical conditions or other emergency situations that stop some student from handing in problem sets on time, the student should email me immediately and provide solid evidence.

- Make-up Exams

I will allow students to make-up an exam if and only if three conditions are met:(1) I am notified before the exam date; (2) the reason for missing the exam is sensible and verifiable; and (3) the make-up exam is taken before the answers to the exam are postedonline.

• Exams

Two in-class midterm exams will be given over the course of the semester. The exams will be similar to the homework assignments. The questions will be in multiple choice and short-answer format.

- Regrading Issues

Students have TWO weeks from the time I give back an exam (not when you retrieve it) to ask questions regarding the exams. This pertains to exam scoring, grading or re-grading an exam, missed questions etc. Note that if regrading is requested, the whole exam will be regraded, not any sole parts.

- Grades on HuskyCTBesides midterms, grades of homework will be also posted on HuskyCT. I will use the grades on HuskyCT, as well as the final exam grade to calculate the final grade. If a student has any questions about the grades on HuskyCT (homework grading, anonymous homework, etc.), the student should contact me as soon as possible, at latest by the end of final week of classes. No changes could be made after the final week of classes.

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Learning Objectives

• Attendance

It is very important for students to attend class regularly, as students who do not attend class on a regular basis typically perform much worse than those who attend class regularly. The in-class interaction fosters a better learning environment and, should lead to better performance on all graded components of the course.

By the end of the course, students should be able to:

- Exams Dates

Midterm #1: Thursday Feb 22 (normal class time/place) Midterm #2: Thursday March 29 (normal class time/place) Final Exam: Scheduled by the Registrar Final exam: Scheduled by the University. Details of the final exam will be provided in class.

Student Expectations

I expect students to (a) attend each class, (b) read the relevant material before class, (c) review the content covered i n class, (d) complete and submit assignments on time, and(e) participate i n classroom activities. If students meet these expectations, grades will take care of themselves.

1. Define microeconomic terms used for policy analysis in health care markets.

2. Describe key assumptions and features of the microeconomic approach to health andhealth care.

3. Explain the unique features of the “market” for health and health care relative to perfectlycompetitive markets.

4. Constructively and critically analyze issues in health care and public health usingeconomic tools.

5. Assess the potential impact of hypothetical interventions in the health care system onoutcomes (cost, quality, and access) and on participants (consumers, providers, andinsurers).

Course Email PolicyI recommend that students use the @uconn email address when emailing me. Note emails are mainly for quick communications. If students have any detailed questions about the course contents, the problem sets, etc., students should come to my office hours instead.

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Syllabus Changes

I reserve the right to change the course syllabus. If changes are made, adequate notice will

be provided. The most likely changes (if any) will be to the course outline .

Respect and Diversity- I will do my best to provide you with an atmosphere of mutual respect and trust. Everyone, including me, should abide by UConn policies concerning academic integrity, anti-harassment, and anti-discrimination.- I will NOT tolerate disrespectful comments regarding elements of diversity like, but not limited to, ethnicity, gender, age, social class, and dialect.- In spite of my best efforts, I might accidentally overlook the sensitivity of some issues. If you feel uncomfortable with a topic, discussion, or any aspect of the class environment, please let me know as soon as possible.

Academic Integrity- Academic dishonesty or plagiarism.pdf of any type will not be tolerated in this class. Please refer to the Student Code for specific guidelines: http://community.uconn.edu/the-student-code-appendix-a/- We understand that the concept of academic integrity might vary on different countries, so we will be addressing more specific issues during the course. In any case, ignorance of the proper code will NOT excuse a student from facing the consequences of academic misconduct, so make sure you are familiar with the expectations.- Academic misconduct will result in a failing grade for the cycle in which it occurred. Recurring cases will result in failure of the whole course and the student will be reported to UConn’s Community Standards Office, which can lead to disciplinary action.

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Course outline, Topics and Readings:

I. Introduction to the health economics:

This session provides an overview of course content and describes how thecourse is structured and operates. The discussion of U.S. health care markethelps put the course content in context.FGS: chapter 1.

II. Recall of Microeconomics: Utility and Choice, Indifference Curves, etc.

This session recalls the economic model of consumer choice, in whichconsumers maximize their satisfaction subject to a budget constraint. FGS: chapter 2.

III. Economic Evaluation of Health Care

In this session we will quckily go over two major research methods: Cost-Benefit Analysis and Cost-Effectiveness Analysis.FGS: chapter 4.

IV. Supply of Health and Medical Care

This session will start to look at the supply of health and study the production of health, then we will focus on the supply side of health care.

You are advised to read ahead in order to prepare for lectures.

FGS: chapter 5&6.

V. Demand for Health and Medical careThis session provides an application of the consumer choice model to health and health care, including discussion of two additional demand shifters: time and coinsurance. FGS: chapters 7 & 9

VI. Health Insurance and Health Insurance Markets

This session discusses consumer choice under uncertainty and extends the discussion of choice under uncertainty to the demand for insurance, as well as the supply of health insurance, efficient levels of insurance, and the implied income transfers from insurance. In additon, we will discusses health insurance markets, including situations wherehealth insurance markets unravel and the indirect effects of employerprovidedhealth insurance. FGS: chapter 8,10 &11

VII. Healthcare Reform

In this last session, we will look into the recent healthcare reform and compare Obama Care with Trump Care.Additional Reading will be given in class.

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