- The plan is to reduce the demand of doctors by giving an online consultation and deciding whether the particular case needs a doctor appointment or the nurse can also solve the case. Hence, it will shift the demand of doctors to the left signifying decrease in the demand for doctors in the programme of E-See (Consumer Health Day). It will keep the supply constant since the programme will not alter the supply of doctors in any way. There will decrease in the charges of doctors because of their reduced demand in the healthcare and Medicaid. This will increase the company’s profitability as doctor’s cost will fall. (Sloman)
- The idea of using this plan is to reduce the unnecessary visits of clients to the healthcare service providers, and to manage the rising cost of healthcare together. Since, the insurance has now a cost if too many visits are made, therefore, employees will tend to use the services less often. As a result, the demand for such services is going to reduce resulting in lower costs for the companies. This will again shift the demand curve to the right, and will reduce the quantity of healthcare services used by the employees. (Coursera)
- Medicare is a social insurance programme, whereas Medicaid is the social welfare programme. The model will work for Medicaid programme, since Medicare is for people above 65 years of age. Employees usually retire by that age. As a result, the Medicaid programme will be covered by American Well. Another reason why the Medicaid programme will be covered is because Out Patient Hospital Consultations are covered in the programme suggested by American Well. (Today)
References
Consumer HealthDay,. 'More Employers Moving To High-Deductible Health Plans'. N.p., 2014. Web. 1 Dec. 2014.
Coursera,. 'Coursera'. N.p., 2014. Web. 1 Dec. 2014.
Sloman, John, Keith Norris, and Dean Garratt. Principles Of Economics. Print.
Today, Medical. 'What Is Medicare? What Is Medicaid?'. Medicalnewstoday.com. N.p., 2014. Web. 1 Dec. 2014.
