cost and cost control Flashcards
Kissicks triangle?
cost
quality
access
annual spending?
3.2 trillion
Half of health care used to treat
5% of population
Why is cost a burden on business?
if insurance goes up everything goes up.
costing more for employers
what does increasing health care cost do?
care and insurance cost both go up/
Why is cost so high?
moral hazard
demographic shift (ppl live longer)
reduced consumer ownership(not responsible for it.)
unnecessary spending.
using insurance when they don’t need it
moral hazard.
What are the 2 factors increasing cost?
price and quantity
factors of price?
market power
administrative costs
how is price controlled?
decrease quality
increase utilization
cost-shifting
mandatory uniform fee schedule.
Volume and intensity aspects that increase cost?
fee for service fragmented care technology malpractice chronic condition demographics
What is a better cost control strategy?
- controll fees and provider incomes.
- cutting price on supplies
insurance model used to manage cost, also quality and access
Managed Care
Integrates financing and management + HCD to an enrolled population
employs/contracts with system of providers which deliver service and shares financial risk
Managed health care Plan
How does managed care work?
provider makes up network. plans pay depends on network rules.
