In this market-leading text, Phelps combines current economic thinking and research in health economics with real health policy problems. New to the heavily revised Third Edition is a chapter on Managed Care and additional coverage of pharmaceutical industries, as well as an appendix for review of the Math and Microeconomics concepts used in the book. The early chapters of Health Economics develop necessary methodological foundations supported with concrete empirical studies. Later chapters focus on major policy areas, such as the structure and effects of Medicare reform, competition and regulation in health care, and international comparisons of health care systems, building on the conceptual material developed earlier in the book.