14.) Rationing Healthcare Flashcards
What is cost-effectiveness analysis (CEA)?
The process of measuring the costs and health benefits of various medical treatments, procedures, or therapies.
What is increments; cost-effectiveness ratio (ICER)?
The ratio of the incremental costs of pursuing one treatment over another to the incremental benefits of that treatment.
What do you calculate when no alternative treatments are available?
An average cost-effectiveness ratio (ACER)
What is a cost-effectiveness frontier (CEF)?
A subset of treatment strategies for a condition that is not dominated by any other treatment. Any treatment on the CEF is said to be potential cost effective.
What is a quality-adjusted life year (QALY)?
A unit of life expectancy that is adjusted for the quality of life during those years. QALY’s are commonly used in cost-effectiveness analysis as a measure of health benefit.
What id cost-benefit analysis?
The process of choosing an optimal treatment among the potentially cost-effective ones, given a certain monetary value for each unit of health effect. This optimal treatment is cost-effective for a person or agency with that valuation.
How can moral hazard arise for patients with insurance choosing between treatments?
Without insurance the patient may have chosen the cheaper slightly less effective cheaper but with insurance they will choose the most effective treatment regardless of cost.
How can insurers and governments reduce the moral hazard problem?
They can use rationing to reduce moral hazard without raising prices. They can decline to pay for certain treatments if they are not deemed cost-effective. This can reduce health costs and allows for lower premiums.
When are rationing processes not adopted?
Concerning healthcare of people in disaster situations and ensuring people have a ‘good’ and dignified death
