Test Bank For Health Economics and Policy - 8th - 2023
All Chapters
The Economic Perspective - ANSWER Unique among the social sciences in that it
establishes a context of scarcity and uncertainty
Health economics - ANSWER studies issues related to efficiency, effectiveness,
value and behavior in the production and consumption of health and healthcare.
Broadly, it deals with how healthcare systems function.
Arrow's "Uncertainty" - ANSWER Arrow argues that healthcare doesn't fit the free
market model. To Arrow, unless a patient knows much about medicine as his/her
doctor, the patient cannot evaluate the quality of advice the doctor gives him/her.
This, arrow calls "uncertainty."
Grossman's "Production on Health" Model - ANSWER Grossman developed an
economic framework for the study of medical care demand in which medical care
counts only as one of the many factors used to produce good health.
Grossman's Determinants of Health - ANSWER Grossman considers the
determinants of health to include, income, wealth, education, genetics, and public
health.
Are Healthcare systems static or dynamic? - ANSWER Health care systems are
not static. Rather, they are dynamic in that policy makers and planners are always
looking for better ways to produce, deliver, and pay for a growing menu of medical
care services demanded by an insatiable public.
Healthcare facilities in the United States - ANSWER predominantly owned and
operated by the private sector. Government facilities are relatively small in number.
Health insurance in the United States - ANSWER now primarily provided by the
government in the public sector. 60-65% of healthcare provision and spending
comes from such programs as Medicare, Medicaid, TRICARE, and the Veteran's
Health Administration.
Medicare - ANSWER emerged in 1965 as a national social insurance program
administered by the US federal government. It guarantees access to health
insurance for US citizens and resident aliens, 65 and older, younger people with
disabilities, and people with end stage renal disease.
Medicaid - ANSWER was created by the Social Security Amendments of 1965. As
a health program, it serves people and families with low incomes and resources.
Jointly funded by the state and federal governments, Medicaid is a means-tested
program that is managed by the states.
,TRICARE - ANSWER serves the military population by providing civilian health
benefits for military personnel, military retirees and their dependents, including some
members of the Reserve Component. It is managed by Tricare Management Activity
(TMA) under the authority of the Assistant Secretary of Defense (Health Affairs).
The Veterans Health Administration (VHA) - ANSWER implements the medical
assistance program of the VA through the administration and operation of numerous
VA outpatient clinics, hospitals, medical centers and long-term health care facilities
(i.e. nursing homes). The VHA is the component of the United States Department of
Veteran Affairs (VA) led by the Under Secretary of Veterans Affairs for Health.
Uninsured people in 2009, 2010. 2011 - ANSWER 49.9 million people were without
insurance in 2010. This accounted for 16.3% of the US population.
In 2009, this figure was 16.1%.
In 2011,46.3 million Americans were uninsured.
The three broad and important issues regarding the current state of US Health Care
- ANSWER quality, access and affordability
Reasons for the need to reform US Health Care - ANSWER - In the last decade,
private health insurance coverage has gradually declined with the number of
uninsured rising at an alarming rate.
- Gaps in health insurance coverage combined with the astronomical rise in
spending on medical care.
- Concern over access to care for the uninsured and whether those who are currently
insured would continue to be insured.
- Whether the quality of medical care would suffer as managed care gradually
becomes the norm for the provision of medical care.
Americans without insurance coverage - ANSWER find themselves relying on
public assistance and private charity for their care. Many people get insurance
coverage through their place of employment so there is a genuine concern that that
coverage would be lost upon losing the job.
Health Care Crisis Causes - ANSWER Experts on health care see the healthcare
crisis as one that is borne out of the astronomical rise in aggregate spending coupled
with the problems the government is experiencing in sustaining Medicare and
Medicaid.
But there appears to be divergence of views from experts as far as the cause of the
crisis is concerned.
While some argue that the problem lies in the unrestrained use of medical
technology, others believe that the increased use of health insurance and tax
subsidies that encourage individuals to overinsure is driving the crisis.
, The Unique Nature of Medical Care as a Commodity - ANSWER 1. The demand
for medical care is irregular
2. There are information problems associated with medical care transactions.
3. There is widespread uncertainty in medical transactions.
4. There is widespread reliance on not-for-profit providers especially in the provision
of hospital services.
The demand for medical care is irregular - ANSWER With the exception of a small
percentage of care that fall under the classification of preventive, the demand for
medical care follows an accidental injury or the onset of illness. This is not the case
for other commodities
There are information problems associated with medical care transactions. -
ANSWER These problems disproportionately affect patients. Although all
consumers are frequently confronted with difficulties in collecting information about a
product, in the case of medical care, this problem becomes more acute for
consumers given that medical knowledge is very complex. Medical care consumers
are poorly informed and find it very difficult to be well informed. Patients find
themselves relying on physician for both their diagnosis and the prescription of
treatments.
There is widespread uncertainty in medical transactions. - ANSWER Since it is
rare to predict an illness, an individual cannot usually predict his or her demand for
medical care.
There is widespread reliance on not-for-profit
providers especially in the provision of hospital services. - ANSWER It is argued
that restraining the profit motive would solidify the basis for trust between patient and
provider.
Government Intervention in Medical Care - ANSWER Medical costs have
escalated over the last decade as have the number of uninsured, causing
government intervention.
Arguments for Government Intervention - ANSWER - medical care is too
complicated to be left to the free market.
- patients always have to rely on the recommendations of physicians because
medicine is inherently difficult to understand.
- medical care being a social good, it is too important to be left to the workings of the
private market.
- the provision of medical care based on the ability to pay is morally repugnant.
Arguments against Government Intervention - ANSWER - the US medical care
system has always been market-based and should remain so since more
government intervention would only lead to an escalation of cost.
- A clear evidence of this, according to these opponents, is the original projection in
the 1960s that Medicaid spending will reach $9 billion in 1990. Yet the actual cost of
Medicaid in 1990 was $109 billion
All Chapters
The Economic Perspective - ANSWER Unique among the social sciences in that it
establishes a context of scarcity and uncertainty
Health economics - ANSWER studies issues related to efficiency, effectiveness,
value and behavior in the production and consumption of health and healthcare.
Broadly, it deals with how healthcare systems function.
Arrow's "Uncertainty" - ANSWER Arrow argues that healthcare doesn't fit the free
market model. To Arrow, unless a patient knows much about medicine as his/her
doctor, the patient cannot evaluate the quality of advice the doctor gives him/her.
This, arrow calls "uncertainty."
Grossman's "Production on Health" Model - ANSWER Grossman developed an
economic framework for the study of medical care demand in which medical care
counts only as one of the many factors used to produce good health.
Grossman's Determinants of Health - ANSWER Grossman considers the
determinants of health to include, income, wealth, education, genetics, and public
health.
Are Healthcare systems static or dynamic? - ANSWER Health care systems are
not static. Rather, they are dynamic in that policy makers and planners are always
looking for better ways to produce, deliver, and pay for a growing menu of medical
care services demanded by an insatiable public.
Healthcare facilities in the United States - ANSWER predominantly owned and
operated by the private sector. Government facilities are relatively small in number.
Health insurance in the United States - ANSWER now primarily provided by the
government in the public sector. 60-65% of healthcare provision and spending
comes from such programs as Medicare, Medicaid, TRICARE, and the Veteran's
Health Administration.
Medicare - ANSWER emerged in 1965 as a national social insurance program
administered by the US federal government. It guarantees access to health
insurance for US citizens and resident aliens, 65 and older, younger people with
disabilities, and people with end stage renal disease.
Medicaid - ANSWER was created by the Social Security Amendments of 1965. As
a health program, it serves people and families with low incomes and resources.
Jointly funded by the state and federal governments, Medicaid is a means-tested
program that is managed by the states.
,TRICARE - ANSWER serves the military population by providing civilian health
benefits for military personnel, military retirees and their dependents, including some
members of the Reserve Component. It is managed by Tricare Management Activity
(TMA) under the authority of the Assistant Secretary of Defense (Health Affairs).
The Veterans Health Administration (VHA) - ANSWER implements the medical
assistance program of the VA through the administration and operation of numerous
VA outpatient clinics, hospitals, medical centers and long-term health care facilities
(i.e. nursing homes). The VHA is the component of the United States Department of
Veteran Affairs (VA) led by the Under Secretary of Veterans Affairs for Health.
Uninsured people in 2009, 2010. 2011 - ANSWER 49.9 million people were without
insurance in 2010. This accounted for 16.3% of the US population.
In 2009, this figure was 16.1%.
In 2011,46.3 million Americans were uninsured.
The three broad and important issues regarding the current state of US Health Care
- ANSWER quality, access and affordability
Reasons for the need to reform US Health Care - ANSWER - In the last decade,
private health insurance coverage has gradually declined with the number of
uninsured rising at an alarming rate.
- Gaps in health insurance coverage combined with the astronomical rise in
spending on medical care.
- Concern over access to care for the uninsured and whether those who are currently
insured would continue to be insured.
- Whether the quality of medical care would suffer as managed care gradually
becomes the norm for the provision of medical care.
Americans without insurance coverage - ANSWER find themselves relying on
public assistance and private charity for their care. Many people get insurance
coverage through their place of employment so there is a genuine concern that that
coverage would be lost upon losing the job.
Health Care Crisis Causes - ANSWER Experts on health care see the healthcare
crisis as one that is borne out of the astronomical rise in aggregate spending coupled
with the problems the government is experiencing in sustaining Medicare and
Medicaid.
But there appears to be divergence of views from experts as far as the cause of the
crisis is concerned.
While some argue that the problem lies in the unrestrained use of medical
technology, others believe that the increased use of health insurance and tax
subsidies that encourage individuals to overinsure is driving the crisis.
, The Unique Nature of Medical Care as a Commodity - ANSWER 1. The demand
for medical care is irregular
2. There are information problems associated with medical care transactions.
3. There is widespread uncertainty in medical transactions.
4. There is widespread reliance on not-for-profit providers especially in the provision
of hospital services.
The demand for medical care is irregular - ANSWER With the exception of a small
percentage of care that fall under the classification of preventive, the demand for
medical care follows an accidental injury or the onset of illness. This is not the case
for other commodities
There are information problems associated with medical care transactions. -
ANSWER These problems disproportionately affect patients. Although all
consumers are frequently confronted with difficulties in collecting information about a
product, in the case of medical care, this problem becomes more acute for
consumers given that medical knowledge is very complex. Medical care consumers
are poorly informed and find it very difficult to be well informed. Patients find
themselves relying on physician for both their diagnosis and the prescription of
treatments.
There is widespread uncertainty in medical transactions. - ANSWER Since it is
rare to predict an illness, an individual cannot usually predict his or her demand for
medical care.
There is widespread reliance on not-for-profit
providers especially in the provision of hospital services. - ANSWER It is argued
that restraining the profit motive would solidify the basis for trust between patient and
provider.
Government Intervention in Medical Care - ANSWER Medical costs have
escalated over the last decade as have the number of uninsured, causing
government intervention.
Arguments for Government Intervention - ANSWER - medical care is too
complicated to be left to the free market.
- patients always have to rely on the recommendations of physicians because
medicine is inherently difficult to understand.
- medical care being a social good, it is too important to be left to the workings of the
private market.
- the provision of medical care based on the ability to pay is morally repugnant.
Arguments against Government Intervention - ANSWER - the US medical care
system has always been market-based and should remain so since more
government intervention would only lead to an escalation of cost.
- A clear evidence of this, according to these opponents, is the original projection in
the 1960s that Medicaid spending will reach $9 billion in 1990. Yet the actual cost of
Medicaid in 1990 was $109 billion
