Book - Chapter 3 Flashcards
Moral hazard
When people are protected from risks, they might behave in riskier ways because someone else will bear the costs.
Worried well
When people seek care because they are afraid they are ill, even if they are not.
Actuarial fairness
Basing premiums on the costs the person is expected to generate.
Co-payment
The person receiving the bill must pay a fixed amount of each bill.
First dollar coverage.
Canada’s health insurance model, where there are no co-pays or deductibles for all medically necessary physician and hospital services.
Public (financing and delivery)
Public refers to the government, which in tern can have various levels, such as national, provincial, territorial, state, regional, and local.
Examples of private financing and delivery
Can include corporate for-profit businesses, for-profit small business, not-for-profit organizations, and individuals.
Quasi-public organizations
Legally private but heavily regulated and thus span the boundary between public and private.
Public arm’s-length organizations
A regional health authority that is incorporated as private non-profit bodies, but may have boards who are appointed by government.
Privatization
The movement from public to private.
Three examples of production characteristics
Contestability, measurability, and complexity.
Contestability
Barriers to entering and exiting the market.
Measurability
How easy it is to measure what is being done.
Complexity
Whether the activity stands on its own or needs to be integrated with other activities.
Allocation
How resources flow from payers to providers and the different incentives that go with different payment models.
