• Distinguish between treatment substitution effects and treatment expansion effects of new medical technologies.
• Explain the term “means-tested public insurance.”
• Describe the evolution of the prospective payment system for Medicare.
• Describe examples of the public provision of health care
• Identify examples of allocative efficiency in health care
• Explain the concept of transaction cost in the public supply of health care.

Research the history and projected future of the Medicare Advantage program and identify two areas in which the government has altered its design in the past and two areas where it might alter the program’s design in the future. Provide a rationale for your answers and supportive material where appropriate.

Define horizontal and vertical equity in the provision of health services and then discuss specific indicators that can be used to evaluate the horizontal and vertical equity of a health system, providing examples to support your responses.