Module 7 lecture, part 1 Flashcards
What is the central role of HC financing?
To pay health insurance premiums
What does HC financing do?
Increases demand for HC through health insurance
What does HC financing influence, and how?
Supply of HC by affecting the production of HC services, such as capital expenditures, renovations, expansions, and adoption of new svcs and tech.
What does HC financing stimulate?
New models of HC organization
What is also affected by HC financing?
Supply and distribution of HC professionals.
Total HC expenditures
____ increases demand, and supply for HC along with ______ (this is according to the conceptual model of cost control)
Insurance, payment
What determines access, which affects utilization of svcs, according to the conceptual model of cost control?
Insurance and supply of HC svcs
Utilization is also directly controlled by ______
Insurance, what is covered or not, and managed care
Expenditure formula
E = P X Q
Expenditures = price x utiilization
What is quantity of services consumed also affected by?
The changes in and the size of demographic composition
What are HC expenditures increased by?
Expansion of health insurance
Increase in health insurance premiums
What are HC expenditures reduced by?
Restricting insurance (demand-side rationing)
Restricting reimbursement to providers
Having fewer specialists
Spending less on R &D
Direct control over utilization (supply-side rationing)
Designating certain svcs as noncovered (rationing)
Definition of insured (beneficiary)
An individual protected by insurance
Insurer definition
An insurance agency that assumes the risk
Underwriting definition
Evaluation, selection (or rejection), classification, and rating of risk
