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Health Econ > SkeletonNotes10 > Flashcards

SkeletonNotes10 Flashcards

1
Q

In economic modeling, tradeoff decisions are made according to one’s ________.

A

preferences and goals

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2
Q

The preferences of a society with many people with __________ are not realized so ________

A

different individual preferences
easily

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3
Q

Kenneth Arrow’s Impossibility theorem points to the aggregation problem. Even though our __________ can be ordered, our aggregated preferences might not be able to. Thus societies will struggle in creating policies that involve important ____________.

A

individual preferences
tradeoffs and complexities

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4
Q

Three goals represent the tradeoffs to health policy:

A

health, wealth, and equity

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5
Q

As we have seen, attempts to increase health __________ - we would need to sacrifice part of our wealth to be healthier. Attempts to create a more ___________ is also costly.

A

cost money
equitable system

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6
Q

Any hypothetical policy that combats adverse selection and increases equity would either?

A

increase costs or lower health for some

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7
Q

Every policy choice involves a tradeoff between health, wealth, and equity. Otherwise it would be?

A

Obvious and probably implemented already

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8
Q

Any national healthcare system must answer three broad questions:

A
  1. how should health insurance work?
  2. How should moral hazard be controlled in public insurance?
  3. How should health care provider markets be regulated?
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9
Q

A correct policy that address any of these questions will __________. it still depends on the value judgements of ________.

A

favor one value more than the others
society

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10
Q

What are the four pathologies that policy can be susceptible to?

A

adverse selection
moral hazard
monopolistic behavior
health disparities

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11
Q

In completely private insurance markets, the Rothschild-Stiglitz model predicts that:

A

only frail customers are fully insured and much of the population is uninsured

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12
Q

Completely private insurance markets have the most likelyhood of a _________, have minimal __________, and ________.

A

death spiral
government involvement
Low taxes

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13
Q

Completely private insurance markets increases the number of people that are?

A

Not fully insured and having catastrophic medical expenses

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14
Q

Universal public insurance, financed by _____, may cause ________ in the economy. Although lower healthcare costs can ____________.

A

taxes
distortions
increase efficiency

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15
Q

Universal public insurance sidesteps adverse selection and ends _________ as well as furthers ___________.

A

uninsurance
the goal of equity

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16
Q

With universal public insurance, ____________ must be controlled, or else ____________.

A

moral hazard
government budget can explode

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17
Q

universal public insurances can also be called?

A

“single-payers” healthcare

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18
Q

a mandate (legal requirement) confronts adverse selection (all must be in the pool

A

Compulsory insurance

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19
Q

Why can mandates be expensive

A

they may have to be coupled with subsidies to help the poor, which are funded by taxes

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20
Q

In employer sponsored insurance, employers are required or encouraged to offer an ____________

A

insurance contract to all employees

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21
Q

In employer sponsored insurance, the need to stay in ones job is a strong incentive for healthy ____________, mitigating ____________

A

employees to enter the pool
adverse selection

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22
Q

Employer sponsored insurance creates labor market __________ and does not reach the __________

A

inefficiencies
unemployed

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23
Q

Means-tested health insurance __________. (ex. ______ in the U.S.)

A

subsidizes care for the poor
Medicare

24
Q

Means-tested health insurance improves equity by?

A

providing care to those who could not otherwise afford it

25
Q

Means-tested health insurance requires __________ and may increase ________

A

higher taxes
Moral hazard

26
Q

What ways are there to reduce unnecessary/wasteful usage of the health system?

A
  1. health technology assessment and cost effectiveness analysis
  2. Cost sharing
  3. Gatekeeping and queuing
  4. perspective payments
27
Q

Health technology assessment (HTA) and the use of cost-effectiveness analysis (CEA) can be used to make sure only ____________

A

treatments are covered if they meet a certain threshold in reward/risk ratio

28
Q

Cost effectiveness analysis (CEA) reduces moral hazard by?

A

reducing spending on inefficient costly treatments

29
Q

Cost effectiveness analysis (CEA) makes insurance contracts ________, because some services are not covered, making the entire system __________

A

less full
cheaper

30
Q

Cost sharing is done to increase the price of __________

A

unnecessary usage

31
Q

cost sharing uses _______________

A

deductibles, coinsurance, and copayments

32
Q

cost sharing decreases _________, and increases __________. an example is ________

A

moral hazard
out of pocket spending
medicare

33
Q

Gatekeeping and queuing increases the ____________

A

difficulty and time in usage

34
Q

Gatekeeping and queuing creates a ____________

A

teared system of doctors one must see in order

35
Q

Gatekeeping and queuing eliminates

A

unnecessary appointments

36
Q

Gatekeeping and queuing may reduce the number of ________, which could be good if _______

A

specialists
moral hazard is a problem

37
Q

Gatekeeping and queuing, people may pay more in _________, which may lead to ____________

A

time
political backlash

38
Q

Prospective payments, similar to Fuchs capitation system, to disincentivize provision of __________

A

unnecessary services

39
Q

With prospective payments, payments are made to providers before a service is __________, and the amount paid depends on the condition of the __________

A

rendered
patient admitted

40
Q

Prospective payments reduces?

A

physician-induced demand and moral hazard

41
Q

With prospective payments however, doctor-patient relationships may become ____________

A

adversarial

42
Q

The health system must answer how to REGULATE the __________. So we can regulate _________, the ____________, and ____________.

A

provision of healthcare
monopolies
medical arms race
physician-induced demand

43
Q
A
44
Q

What are the three ways to work on healthcare provisions?

A

public provision
private hospital markets
government-set prices

45
Q

With public provisions, hospitals are __________ and financed by __________, physicians are employed by the __________

A

government run
taxes
government

46
Q

Public provisions can reduce ________________. May be vulnerable to agency problems if _______________ to ensure success. May lack feedback mechanism to fix problems, commonly has __________

A

reduce costs and improve quality over hospital oligopoly
government workers have less incentive
lower costs but longer queues

47
Q

Private hospital markets preserve the incentive to __________, but too little competition leads to __________and ______

A

operate effectively
high prices and under provision

48
Q

Private hospital market competition can lead to what two things?

A

Medical-arms race, and poor and uninsured lacking access to quality care

49
Q

Government-set prices limits private providers from exercising ___________, can induce perverse incentives, prices set to low will not be __________ while the most profitable serviced will be ____________

A

market power
offered
over-prescribed

50
Q

Various countries around the world have attempted to create various policy combinations, three to take note of are:

A

Beverage model
Bismark Model
American Model

51
Q

The beverage model:

A

-single-payer insurance
-public provision of healthcare
-little cost sharing
-emphasis on equity
-Long queues and payed by taxes

52
Q

What are some examples of the beverage model?

A

UK, Scandinavia, Canada, Australia, & New Zealand

53
Q

The Bismark Model:

A

-Compulsory private insurance
-private hospitals and doctors
-strict price controls set by government
-balances equity and liberty

54
Q

What are some examples of the Bismark Model:

A

Germany, Japan, Switzerland, Netherlands

55
Q

American Model:

A

-private markets in a central role
-no universal care mandate
-no price controls
-public insurance for select groups: elderly and poor
-emphasis on liberty

56
Q

Examples of the American Model:

A

United States of America

Health Econ (8 decks)

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