Module 11-12 Flashcards
What are some of the challenges facing the health care system across the developed world
-aging population
-indigent citizens
-how to incorporate technologies-drugs
rationing and expensive procedures
-rising costs
-expectation
What are the 4 types of health systems
-traditional sickness insurance
-national health insurance
-national health service
-mixed
What is the traditional sickness insurance model
a private market approach with the state subsidies ex Germany
What is the National health insurance model
single payer health insurance system ex Canada, Finland, Norway, Spain, and Sweden)
What is the National Health service model
where the state not only pays for health care but also directly provides health care ex UK New Zealand, Turkey
What is the Beveridge model
(single payer system) health care is provided by the government and paid for by taxes. Main objective is to eliminate the price rationing of health care, access should be based on need not ability to pay
What is the Bismarck model
(traditional sickness insurance) uses insurance system financed jointly by employers and employees through payroll deduction. these plans cover everyone while not making a profit. Governments sets health care prices in consultation with doctors and hospital managers. Germany France Japan
What is the National Health Insurance Model
(mix of Bev and Bis) while the government pays for health care financed through tax payments, hospitals and doctors are nominally private, non profit intuitions. Canada, South Korea
What is the out of pocket model
individuals pay directly when receiving services as in many low income countries, based on individuals ability to pay
What are some reasons the US system is more expensive than Canada
- Lower administrative costs in Canada
-Differences in Technology, US has more expensive
-Differences in wages, US providers are paid much more
How is a physician different from a businessman
-advertising and price competition are eliminated
-advice is supposed to be divorced from self interest
-treatment is dictated by objective needs and not by financial consideration
-provision of correct info out weighs desire to please customer
What is the Physician Utility Function and what happens when they are paid by salary and fee for service
U = U(Consumption(C), Leisure(L), Ethics(E))
When paid by salary a doctor will under-provide care
When paid by a fee for service (FFS) care is over-provided
What are the two effects of a fee increase in the physician model
- Substitution Effect, Wages increase, consumption of leisure decreases= increase in quantity supplied ( upward sloping portion)
- Income Effect, increase in wages, leads to increase in income, increase in the consumption of leisure= decrease in the quantity of labor supplied (backward bending)
What are the differences between a standard market and the market for drugs
Prescriber chooses what drug is needed
Government/ insurer pays
Patient is the consumer
