Week 5: Health Care Financing

Question 1

What is public sector and public financing?

Answer 1

Public Insurance, public hospitals, public employees

Question 2

What is public sector delivery and private financing?

Answer 2

Public insurance topped up by private users’ fees

Question 3

Private sector delivery and public financing

Answer 3

Public insurance and privately employed or self employed providers

Question 4

Private sector delivery and private financing

Answer 4

Private insurance and privately employed or self employed providers

Question 5

What is General Taxation?

Answer 5

• Revenue collected thru various forms of tax
• Public insurance system
• Wide tax base
• Patients don’t pay @ point of entry

Question 6

What are the Pros and Cons of General Taxation?

Answer 6

• Pros: Effectively “pools risks”, reduces admin costs (one main insurer), good in cost containment
• Cons: Not responsible to the individual’s needs, can’t see health spending thru taxes

Question 7

What is Social Insurance?

Answer 7

• Health insurance organized in groups
• Often tied to employment
• Private not for profit bodies
• Workers are mandated to contribute
• Limited by their size
• Based on payroll taxes
• Contributions more tied to health services
• Advantages are largely political

Question 8

What are the Pros and Cons to social insurances?

Answer 8

Pros: Transparancy, responsiveness to local needs
Cons: Not always effective in pooling the risks, tied to employment, more expensive tendency

Question 9

What are Private and Out of Pocket Models?

Answer 9

• Private financing models
• Allocative efficiency
• Complemetary/user fees
• High admin costs
• Government’s role is of a regulator
• Hard to apply to health needs
• Regressive in nature; poor bears the burden

Question 10

What are Market in Health Care?

Answer 10

• Efficiency and responsiveness
• Excessive bureaucratic and admin requirements
• Overcapacity
• Overtreatment and undertreatment
• Info asymmetry
• Absence of economies of scale

Question 11

What happened in 1977

Answer 11

Feds and prov gov agree to create EPF (established programs financing agreement)

Question 12

What happened in 1944

Answer 12

Canada health and social transfer (CHST) introduced

Question 13

What happened in 2004?

Answer 13

Fed gov introduces the Canada Health Transfer

Question 14

What happened in 2017?

Answer 14

Fed gov re-negotiates the canada health transfer

Question 15

What was the 2023 Agreement?

Answer 15

• $2 billion CHT that would help address current system pressures
• 5% CHT guarantee for the next 5 yrs
• $25 billion over 10 yrs address specific priorities ID’d by the feds such as family HS, HW and backlogs, mental health, substance use, and modernized health system
• 1.7 billion over 5 yrs support hourly wage increase for PSW and related professionals
• $175 million over 5 yrs for Territorial health investment fund