Terminology Flashcards
(92 cards)
Moral Hazard
lack of incentive to guard against risk were one is protected from its consequences
Canadian Health Act
Through this Act, the federal government ensures that the provinces and territories meet certain requirements, such as free and universal access to publicly insured health care.
Five principles of the Canadian Health Act
UPPAC: Universality, portability, public administration, accessibility, comprehensiveness
When was the Canadian Health Act passed?
1984
Free Market
Free markets are characterized by a spontaneous and decentralized order of arrangements through which individuals make economic decisions/an economy with unobstructed competition and only private transactions between buyers and sellers.
What are the three aspects of HC systems
Financing, Delivery and Allocation
Financing Aspect Questions
Who pays for health care services? How is it routed?
What are the 2 types of Financing
Private Sources, Public Sources
Private Sources
1) Individual Out of Pocket
2) Insurance: individual and employment based
2 types of delivery
1) Private Organizations and Providers
2) Government Organizations and Providers
3 options for allocation
1) On basis of market competition
2) on basis of central plan
3) on basis of quality
Allocation: Market competition
multiple auto-buyers and competitors for business. Physician income based on number of patients
Allocation: Central Plan
negotiated plan: agreement with how much they will be paid, negotiation between government and physicians
Allocation: quality
problematic because what counts as quality
Conditions of a pure competitive market (free market)
1.Freedom to enter and leave the market, 2.adequate info on price and quality, 3.many buyers and sellers,4. freedom for prices to go up and down
Limitations to freedom to enter and leave the market
Licensing laws = sellers (physicians) prevent entry, buyers (patients) do not know when they will “enter” the market, cannot choose to not purchase health care
Limitations to information on price and quality
Quality is asymmetric and imperfect
2 Limitations to number of sellers and buyers in free market
not enough sellers = monopolies, not enough buyers = organized larger third party (monopsonies)
limitations to price range in free market
prices are not free to go up and down because of imbalance between buyers and sellers
monopsony
market situation where there is only one buyer
where do pure markets exist?
no where
4 types of health models
Mutual Aid Model, State Model, Professional Model, Corporatist Model
Mutual Aid Model
” to support fellow members and their families when ill”
Who is responisble in Mutual Aid Model
Individual.