Midterm Flashcards
(106 cards)
Currently what precent of its GDP does the united states spend on healthcare?
17.6%
What does GDP stand for?
Gross Domestic Product
What does GDP mean?
GDP is the sum of the value of all the goods & services produced in a country in a years time.
what area accounted for approximatley 32% or 1/3 of the heathcare spending?
Hospital care
Name the two key ideas underlying the concept of insurance
Risk Transfer
* Risk is transfered from the individual to the group
Cost sharing (risk pooling)
* With cost sharing of any covered losses are incurred by the group members
( risk transfer & risk pooling you are going to bear risk for me)
What is risk transfer?
Risk is transferred from the individual to the group
shifting the cost of a risk away from the (insured) who runs it to an external party (insurer) in exchange for payment of premium
* insurance allows individuals (insured) to transfer their financial risk to an insurance company (insurer).
* The insurer takes on the risk in exchange for a premium
What is risk pooling?
Combining the risks of multiple individuals so any loss will be spread across a larger group
* Spreading impact of risks across a lrage group – pooled togetehr to cover losses
How does risk transfer and risk pooling work together?
- Risk transfer moves risk from an idividual to an insurer
- Risk pooling allows the insurer to manage that risk by spreading it across many policyholders
What are some of the more significant factors that are driving up healthcare cost?
- fee-for-service model generates a strong incentive to perform a high volume of test and services
- aging of the population will have significant impact on health care spending growth
- Advancing Medical Technology increases health system efficiency and encourages unnecessary utilization of expensive treatments in FFS
Distinguish between the effect of malpractice lawsuits and the impact of defensive medicine
Medical malpractice - fearing malpractice lawsuits, many physicians significantly drive up costs to our health care system by ordering unnecessary test and treatments
* Contribute less than 1% to overall cost
Defensive medicine: “you might not need this test, but I am going to do it because you are worried.”
* Contributes 12% to overall cost
* Drives overutilization
law suit themselves have minimal effect on cost it’s more due to the fear of getting sued that drives the cost.
How do the number of specialist and/or hospital beds in an area impact cost?
More bed, more doctors more structure etc = higher the cost - because you are increasing the access → you get more utilization
More care does not produce better outcomes, bc you are increasing risk → Each time you are doing the procedure you are increasing the risk
Confronted with healthcare costs rising at a greater pace than GDP, officials trying to fund public programs like Medicare are left with what two economic alternatives?
decrease access or we can reduce reimbursement
- At first, spending more improves quality and access over time, the gains level off. goal should be to shift the entire curve upward.
Between 1960 and 2006 gap between health care spending and GDP was 2.5 percentage points per year. How has this gap contributed to a large percentage of the long-term decline in coverage?
Cost of health care became more and more expensive over time = More people could not afford it because cost was rising faster than pay is rising = unaffordable = more uninsured individuals. = decrease in access to healthcare.
What are the three categories of payment sources for healthcare in the United States?
Out of pocket -paying it yourself
Private - employer based
Public - Medicare, medicaid, tri core
Describe the continuum of managed care and how it is interpreted.
As you move from left to right on the continuum, the insurer has increasing control over cost, and increasing control over quality, which results in reduced premiums.
Left: Less Managed →More Control, More choice, higher costs (Indemnity plans, Fee-for-Service)
Moderately Managed → Balanced choice and cost control PPO)
Right: Highly Managed → Less Control Limited choice, lower costs, coordinated care (HMO)
This Right - Rigid Left - Loose
What are the changes related to the demand for and use of health insurance over the past 100 years discussed in the text?
Increase demand in terms of there being greater accessibility to insurance through the employer and government - consequence = greater access to care = increased cost
what eventually happens to healthcare outcomes (quality) as healthcare cost increases and what does shifting this curve up represent?
- Initially it will go up and up the more you spend, but over time it will begin to level out.
- Since you can’t get the curve to continue to go up, what you’ll want to do is just make the whole curve and move it up.
- We look at both, being more effective (getting better outcomes) and efficient (getting the same outcome with the same or fewer resources)
If we lift up the curve we are getting better quality - how do you lift the curve? - you are being more efficient with your resources, you have to be more effective.
What were some of the key characteristics of the uninsured population in the US in 2008?
- do not have a PCP
- delay seeking care until they are sicker
- utilize hospital emergency departments, the most expensive entry point to the health care system, to access the system and receive health care
- all of which results in “serious financial consequences, with many unable to pay their medical bills, resulting in medical debt”
What does it mean to gain access to care and what are the facets that determine real access?
There is a difference between having and gaining.
* you may have (having) physical access, but ask yourself are you able to afford it, do they speak my language etc. what are the barrier stopping you from gaining access to healthcare
* Gaining is where you are able to access the healthcare that is available.
How do the majority of Americans get their healthcare insurance?
Through their employer = private
What has been happening to employer based insurance over time and has the Affordable Care Act changed that trend
- Changes to private health insurance coverage will no doubt continue, but the evidence of the impact of the ACA shows that “it has had no impact on employer coverage”
- Shifting from traditional HMOs to a PPO, premiums went up.
when was the “great divide” in healthcare reached and what was it?
- between 1910 and 1912
- After 1912, patients had an ever increasing expectation that they would NOT only survive the encounter (50/50), but enjoy improved health as a result of the care they received.
- Due to progression in modern medicine (science turned into intervention to actually save peoples lives)
What two issues related to health policy have been central issues concerning healthcare since the early 1900s?
Cost & Access
* Financial Accessibility (the ability to pay for care or obtain and pay for insurance)
* The cost of healthcare itself
How far back in US history does concern about the cost of care go and have attempts been made to address it?
- 1920s
- Yes - e.g. Affordable Care Act, Insurance, employer based concepts, etc.