Term
| what is the equation for the cost of health care? |
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Definition
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Term
| T/F around half of health speding is related to behavior, lifestyle, or other avoidable causes |
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Definition
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Term
Has the money payed out in the health care field (expenditures) slowed or increased since 1980
What are some reasons for this slower econmic growth? |
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Definition
SLowed, significantly bit by bit each year
Econimic recession
SLower spending on hospitals, physicians, and clinical servides, prescription drugs
Slower growth in insurance payments |
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Term
| What are the health progession that recieve the most % of the money in the health care field? |
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Definition
Hospitals 36%
Physicians 26%
Other Personal Health Care 18%
Prescription Drugs 12%
Nursing Home 7% |
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Term
| Have health care cost grown much faster then other market area costs? |
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Definition
Yes, health care inflation is much higher than other inflation
technology increases the cost of health care where as the reverse is usually true in other area |
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Term
| What are the factors that prevent the health care market from functioning more like the normal market structure? |
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Definition
Consumers have limited info on what they are purchasing as to the price and quality of what they are getting
Provider often purchases the service for the patient based on what they need
The health care "product" is not well defined and varies between providers
Price does not fluctuate base on supply and demand (Fees schedules and insurance contract limit price flexibility)
Free entry and exit of the market place is limited by lisensure laws justified by safety |
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Term
| What is the role of insurance concerning cost of health care purchases? |
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Definition
| Insurance helps to insulate consumers from the true cost of their purchases |
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Term
| What is utility and marginal Utility? |
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Definition
Utility: the optimal state of consumer preference and affordability
Marginal Utility: The change in utility achieved by adding one more unit of a good or service |
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Term
| As consumers start to purchase health care as they do other goods and services what will likely happen and why? |
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Definition
| There will be less people going to health care because this high $ amount is not off-set by insurance companies |
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Term
| The Rand health insurance study found what? |
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Definition
Participants with cost sharing:
Visited the doctor less frequently
were admitted to hospitals less often
Spent less on health care services
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Term
| Did cost sharing significantly effect the quality of care? |
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Definition
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Term
| Look at the slide for the break even chart |
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Definition
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Term
| What is fee for service and it characteristics? |
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Definition
Fee for service: provider paid for each prodedure rendered
highest utilization/cost
All risk borne by payer |
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Term
| What is Case-based rate and it's cahracteristics? |
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Definition
Provider paids for each episode of care and there is a shared risk between the provider and the payer
i.e. 1000/month if see under this patient load proivider makes money if over they lose money |
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