PUBHLTH 129 Chapter Notes - Chapter 6: Jones & Bartlett Learning, Managed Care, Health Reimbursement Account

• School: UMASS-Amherst
• Department: Public Health
• Course: PUBHLTH 129
• Professor: Michael Begay

Document Summary

Objectives of chapter 6: explain financing and various insurance programs, discuss the various methods of reimbursement, provide an overview of national health expenditures. Financing is any mechanism that enables people to pay for health care services. It is generally a necessary condition to access health care. Funding of health insurance (private or public) is the most common form of financing. Financing also includes the various methods of paying providers (reimbursement). Financing of health care ultimately aggregates into national health expenditures. In an economic sense, working americans finance their own health care either in exchange for higher salary or through taxes. It compensates providers for the services they deliver. Supply of services is curtailed when reimbursement is curtailed. Providers" ability to create demand for services is covered by insurance (provider- induced demand). The end result is that both moral hazard and provider-induced demand waste resources and increase health care expenditures.