Midterm Notes

Question 1

Free market

Answer 1

an economic system in which prices are determined by unrestricted competition between privately owned businesses.

Question 2

Principle of Free Market:

Answer 2

§Supply and demand
§Competition
§Free choice based on information

Question 3

Managed care

Answer 3

Managed care refers to providing services by a limited number of professionals for a fixed prepaid fee (capitated payment).

Question 4

Payment Sources: Who pays for OT services?

Medicare

Answer 4

A federal program for people over 65 years and some individuals with long term disabilities”

Question 5

Payment Sources: Who pays for OT services?

Medicaid

Answer 5

A state-run program for people who have limited income or high medical expenses..”

Question 6

Payment Sources: Who pays for OT services?

Workers’ compensation

Answer 6

A state-administered program for workers injured on the job”

Question 7

Payment Sources: Who pays for OT services?

Rehabilitation services administration

Answer 7

A federal agency that funds state vocational rehabilitation and independent living support services”

Question 8

Payment Sources: Who pays for OT services?

Commercial insurance

Answer 8

Privately owned companies (HMOs, PPOs)”

Question 9

Payment Sources: Who pays for OT services?

Out-of-pocket payment-

Answer 9

Recipients pay for services in case due to no insurance or a high deductible”

Question 10

Americans with Disabilities Act (ADA):

Answer 10

• prohibits discrimination against individuals with disabilities in all areas of public life,
• Ensure people with disabilities have the same rights and opportunities as everyone else.
• Guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, state and local government services, and telecommunications.

Question 11

Individuals with Disabilities Education Act (IDEA):

Answer 11

originally known as the Education of Handicapped Children Act, passed in 1975. …
-This federal legislation is designed to ensure that children with disabilities be granted a free appropriate public education (FAPE) in the least restrictive environment (LRE)

Question 12

State Practice Acts

Answer 12

. The entire practice act, including accompanying rules, constitutes the law governing physical therapy practice within a state

Question 13

Local jurisdiction requirements

Answer 13

(e.g., school system requirements)

Question 14

Difference between licensure and certification:

§Licensure:

Answer 14

• provides the highest level of public protection by prohibiting unlicensed individuals from practicing occupational therapy or referring to themselves as occupational therapists/occupational therapy assistants.
• Licensure laws reserve a certain scope of practice for those who are issued a license.

Question 15

Difference between licensure and certification:

Mandatory Certification:

Answer 15

• protects the public by prohibiting uncertified persons from referring to themselves as occupational therapists/occupational therapy assistants.
• Unlike licensure, individuals under certain circumstances can practice if they do not refer to their services as occupational therapy.
• Certification laws may provide for a definition of occupational therapy.