Health Economics Aspect This aspect could fall in both Problem, Policy (solution) & Political Circumstances streams please label three sections – problem, policy, and political circumstances. Please revise all three streams further and more insightfully/analytically around the narrowly focused policy ( your thesis topic: CBAS) in addition to “Economic Concepts’ (such as externalities, price sensitivity, demand/supply, etc.). For example, in your political stream section, please discuss the political players that triggered the opening of the policy window — advocate groups, experts, patients (the elderly and the disabled, etc.), media, interest groups, organizations, along with biological, cultural, demographic, ecological, economic, ethical, legal, psychological, social, and technological inputs, how they interact with each other to make political circumstance favorable towards the enactment of the policy CBAS. Financial Incentives in health care •Reimbursement Models •Tax effects Eg. ESHI’s tax exempt for insurance premiums •The role of government in market-driven healthcare system •Cost-Benefits (where do we draw the line?); utility maximization; rationing medical services •Demand-Supply •Deficient market and a public-health policy failure •Asymmetric Information –Adverse selection, Moral Hazard •Cost-sharing (to reduce moral hazard) •Cost-shifting •Pricing Health Insurance –Community rating vs Experienced rating •Health workforce—supply and demand; substitute (AI/data mining with Radiologists; NPP with PCP) and complementary (NPP with PCP; cereal/milk; DVD/DVD players) •Price Sensitivity •Compensating Differentials •Medical Arms Races and Selective Contracting •Externality (antibiotics)