LESSON 4: SPECIAL CHARACTERISTICS OF THE MARKETS FOR HEALTH CARE Flashcards
(43 cards)
The standard theory of how markets work is the (?)
MODEL OF SUPPLY AND DEMAND
The main interested parties are the (?) in the market.
BUYERS AND SELLERS
Buyers pay (?) for the goods and services being exchanged.
SELLERS DIRECTLY
(?) are the primary mechanism for coordinating the decisions of market participants.
MARKET PRICES
Individual choices and market forces can lead to efficient health outcomes; When individuals act their own self-interest, they unintentionally contribute to overall social good
INVISIBLE HAND
Healthcare providers are often paid not by the patients but by (?)
PRIVATE OR GOVERNMENT HEALTH INSURANCE
(?) arises when a person engages in an activity that influences the well- being of a bystander but neither pays nor receives compensation for that effect.
EXTERNALITY
If the impact on the bystander is adverse
NEGATIVE EXTERNALITY
If the impact on the bystander is beneficial
POSITIVE EXTERNALITY
Because buyers and sellers neglect the external effects of their actions when deciding how much to demand or supply, the externality can (?)
RENDER THE UNREGULATED MARKET OUTCOME INEFFICIENT
Government’s response to Positive Externalities (2)
(1) GIVE RESEARCH PATENT
(2) SUBSIDIZE THE RESEARCH
When a patient gets sick, they may not know (?) People rely on the advice of a physician, who has years of specialized training.
WHAT’S THE BEST TREATMENT IS
A contract where a person pays a premium to an insurance company, which then covers some or all medical costs if the person falls ill.
HEALTH INSURANCE
Protects against the financial risk of high medical expenses. Provides certainty by reducing the fear of unexpected healthcare costs.
HEALTH INSURANCE
People generally prefer certainty over uncertainty, especially when it comes to large financial risks; A person may choose to pay a small, predictable insurance premium rather than face the small chance of a large, unpredictable medical bill.
RISK AVERSION CONCEPT
Giving people this option is the purpose of insurance. The general feature of insurance contracts is that a person facing a risk pays a fee (called a premium) to an insurance company, which in return agrees to accept all or part of the risk.
INSURANCE IN PRACTICE
The tendency of a person who is imperfectly monitored to engage in dishonest or otherwise undesirable behavior
MORAL HAZARD
Occurs when individuals with higher health risks are more likely to buy insurance, leading to higher costs for insurers. As premiums rise to cover sicker individuals, healthier people may opt out, further increasing prices and destabilizing the insurance market.
ADVERSE SELECTION
Normally, when some people don’t buy a good or service, perhaps because they think it costs too much given their income, that outcome is not a major problem for society.
HEALTHCARE AS A RIGHT
Serves as the national social health insurance system designed to provide financial risk protection and ensure equitable access to healthcare services for all Filipinos.
PHILIPPINE HEALTH INSURANCE CORPORATION (PHILHEALTH)
The PhilHealth operates using a (?) mechanism where contributions from members, employers, and the government are collected to cover the healthcare expenses of those in need.
RISK POOLING MECHANISM
The PhilHealth enhances healthcare access by reducing (?), which is crucial in preventing individuals from falling into catastrophic health expenditures.
OUT-OF-POCKET EXPENSES
The PhilHealth plays a role in cost control by (?)
NEGOTIATING SERVICE RATES WITH HEALTHCARE PROVIDERS
(?) is like putting money into a shared pot with others to help cover unexpected healthcare costs. Everyone contributes a little, and when someone gets sick or needs medical care, money from the pot is used to pay for their treatment.
RISK POOLING
