Effectiveness and safety of COVID-19 vaccines

Despite overwhelming evidence of the effectiveness and safety of COVID-19 vaccines from
randomized trials and observation data, a sizable percentage of the eligible population in the
United States remains unvaccinated (or partially vaccinated). How might vaccine hesitancy relate
to the Grossman model? How does receiving the vaccine fit into this model and what are the
tradeoffs (consider heterogeneity in vaccine hesitancy shown here;
https://www.kff.org/coronavirus-covid-19/dashboard/kff-covid-19-vaccine-monitor-dashboard/
)? Are there any adaptations to the Grossman model you might suggest to align it more closely
with observed hesitancy? Or other economic models you have come across that could explain
vaccine hesitancy? For example: the Grossman model doesn’t account for differences in the
perception of health benefits from consuming market inputs to the production of health. If an
individual perceives the marginal health benefit of a market input to be small or even negative,
this could change their perceived optimal allocation of time and money.
Discussion 2: (No more than 300 words)
Recently, high-deductible health plans (HDHPs) have become more common in private health
insurance markets. The 2021 KFF Employer Health Benefits Survey finds that 66% of firms with
1,000+ workers offered a HDHP in 2021, compared to 32% in 2010 (report here;
https://www.kff.org/report-section/ehbs-2021-section-8-high-deductible-health-plans-withsavings-option/). Using economic theory, discuss the relative merits or down-sides of these
types of plans from the perspective of insurers and/or enrollees.
Discussion 3: (No more than 300 words)
Value-based payment – or the notion of increasing physicians’ reimbursement for higher quality
of care at a lower cost – is often considered a policy lever for incentivizing more efficient care
through physician behavior. It is unclear (https://link.springer.com/article/10.1007/s11606-017-
4243-3) whether such programs effectively improve care across all populations, including racial
minorities. Using economic theory on physician discrimination, what (if any) impact do you
think value-based payment for physicians would have on racial disparities? Under what
circumstances would this type of program be successful? Unsuccessful? You may discuss any of
these questions or other thoughts you have on this payment program as it relates to racial
disparities and physician behavior