midterm Flashcards
3 pillars of healthcare
quality, accessibility and cost
why are the 3 pillars referred to as the iron triangle
we cannot have very high quality healthcare that is accessible to all at a cost that everyone can afford
-in order to address one of them, something else has to give
GDP (gross domestic product)
the sum of the value of all goods and services produced in a country within a years time
how much of the GDP was healthcare during 2023
17.6%
what part of healthcare has the highest cost associated with it
hospital care
-accounting for nearly 32% of the spending
-majority of hospital was in end of life care
basis of insurance
a risk transfer mechanism that facilitates shifting the cost of risk away from the insured and goes to an external party in exchange for payment
key ides of insurance
risk transfer and cost sharing
cost sharing is ….
when individuals purchase coverage and their resources are pooled together to protect against losses, and together they pool the potential risk for losses that they may experience
with insurance and risk, it is all about …
who is barring the risk
3 types of healthcare paying
out of pocket, private health insurance and public health insurance
out of pocket
payments by the individuals insurance policies, paying for services themselves or paying for part of services through copayments
private health insurance
payments made by individuals and/or employers for premiums, which cover the cost of payments by various health plans
public health insurance
sources include funding from federal, state and local government programs
-such as Medicare, Medicaid and Tricare military
some cost drivers for healthcare
paying in a rewarding manner, growing older/sicker/fatter, wanting new advancements, not enough information to make decisions, hospitals and providers can demand higher prices, have supply and demand problems and risk management (both in malpractice and defensive medicine)
how do malpractice and defensive medicine both contribute to healthcare cost
malpractice contributes less than 1% overall whereas defensive medicine contributes 12% to overall cost
-due to the fact that providers do not want to be sued so they do more than they should
the more beds, structures and resources you have ___________ cost you have
increased healthcare cost
-the more you have, the more work there is to do
even with more doctors or hospitals, this does not necessarily mean better outcomes, why?
everything has its own risk that is associated with it
what were economic alternatives that were discussed in relation with the rising cost of healthcare
decrease access and reduce reimbursement rates for procedures
why was there a 2.5% gap between healthcare spending and GDP?
over time, there was a greater rate of inflation with the GDP and healthcare however healthcare increased at a higher rate
-leading to there being this gap between the two
-the healthcare essentially was rising faster than the economy and therefore the wages were not keeping up with the cost of healthcare
what occurred as a result of the gap between healthcare and GDP
people were unable to afford insurance leading to 44 million people being uninsured
-both employers and employees could not afford it
-leading to access problems
what was done following the 2.5 gap
affordable care act was created
-subsidized the healthcare and restricted discrimination from healthcare
-if they could not afford healthcare, they would be given tax dollars (tax credit or tax money would cover)
-this did not address cost, but did address access
what type of access was addressed by the affordable care act
financial accessibility
what have been two core social issues of healthcare
financial accessibility and cost of healthcare itself
continuum of managed care
there is an increase in control and quality as you move from the left to the right
-indemnity is on the far left with no control over cost/quality
-traditional HMO is on the far left with complete control over cost and quality