Health Care Systems Overview

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Questions and Answers

What are the two critical transitions in the standard developmental path of health care systems?

The two critical transitions are from Voluntary Health Insurance (VHI) to mandatory insurance, and from Social Health Insurance (SHI) to a National Health Service (NHS)/universalist coverage.

Which country was the first to adopt the Social Health Insurance system, and in what year?

Germany was the first country to adopt the Social Health Insurance system in 1883.

What distinguishes a separated health care provision from an integrated one?

Separated provision involves distinct financing and provision systems, while integrated provision combines these aspects for a unified approach.

List three roles of the state in health care according to the information provided.

<p>The state can act as a regulator, financier, and producer in health care.</p> Signup and view all the answers

What was the first country to establish a National Health Service model, and what year did this occur?

<p>New Zealand was the first country to establish a National Health Service model in 1938.</p> Signup and view all the answers

What percentage of healthcare spending in Italy comes from tax revenues?

<p>76%</p> Signup and view all the answers

On average, how much does the Italian NHS spend per patient per year?

<p>EUR 2,210</p> Signup and view all the answers

What are the main reasons Italians opt for private healthcare despite public options?

<p>To skip waiting lists, choose specific health professionals, and ease of access.</p> Signup and view all the answers

As of 2022, what percentage of Italians have some form of private health insurance?

<p>30%</p> Signup and view all the answers

What is the average annual expenditure per Italian on private healthcare?

<p>EUR 700</p> Signup and view all the answers

What is the distribution of healthcare services provided by public versus private providers in Italy?

<p>51% by public providers and 49% by private providers.</p> Signup and view all the answers

What percentage of private health policies in Italy are included in employment contracts?

<p>76%</p> Signup and view all the answers

What are the five major reform trends in Italian healthcare over the last three decades?

<p>Stimulation of greater competition among providers.</p> Signup and view all the answers

What is the primary function of gatekeeping in healthcare systems?

<p>The primary function of gatekeeping is to control access to specialist healthcare through referrals made by general practitioners.</p> Signup and view all the answers

Name three countries that operate under a gatekeeping system.

<p>Australia, Denmark, and the UK.</p> Signup and view all the answers

In contrast to gatekeeping systems, what is a non-gatekeeping system?

<p>A non-gatekeeping system allows patients to access specialists without needing a referral from a GP.</p> Signup and view all the answers

What benefit does a group practice offer over a solo practice for general practitioners?

<p>Group practice allows for better coordination, efficiency in services, and the ability to hire ancillary staff.</p> Signup and view all the answers

How does patient freedom of choice vary in healthcare systems?

<p>Patient freedom of choice can range from complete freedom to limited choice depending on the country's healthcare policies.</p> Signup and view all the answers

What role does a GP play in a patient's healthcare journey within a gatekeeping system?

<p>A GP advises, guides patients, and coordinates care with specialists to ensure continuity of treatment.</p> Signup and view all the answers

What are some drawbacks of solo GP practices compared to group practices?

<p>Solo practices may struggle to provide comprehensive services and may not coordinate care effectively.</p> Signup and view all the answers

List one example of a mixed healthcare system.

<p>Canada.</p> Signup and view all the answers

What is the individual mandate established by the PPACA and when did it become effective?

<p>The individual mandate requires all individuals to purchase an approved insurance policy or pay a penalty, effective starting in 2014.</p> Signup and view all the answers

What are the penalties for individuals who do not comply with the individual mandate in 2016?

<p>In 2016, the penalties were $695 per individual and $2,085 for families.</p> Signup and view all the answers

What is the purpose of health insurance exchanges established by the PPACA?

<p>Health insurance exchanges serve as a state-regulated marketplace for individuals and small businesses to compare and purchase insurance policies.</p> Signup and view all the answers

Who is eligible for federal subsidies under the PPACA?

<p>Federal subsidies are available for low-income individuals and families earning up to 400% of the poverty level.</p> Signup and view all the answers

What significant regulation was placed on insurance companies under the PPACA regarding pre-existing conditions?

<p>Insurance companies cannot deny coverage or charge higher premiums based on pre-existing conditions.</p> Signup and view all the answers

What does the Medicaid expansion entail as outlined by the PPACA?

<p>Medicaid expansion includes all individuals and families up to 138% of the poverty level, effective in 2014.</p> Signup and view all the answers

What changes were made to Medicare reimbursement under the PPACA?

<p>The reimbursement model for Medicare was restructured from Fee-For-Service (FFS) to bundled payments.</p> Signup and view all the answers

How does the German health care system primarily fund its health care services?

<p>The German health care system is funded through contributions to statutory health insurance (78%), general taxation (8%), and out-of-pocket payments (11%).</p> Signup and view all the answers

How does the political culture of a country influence its health care model choice?

<p>Countries with a communitarian culture prefer the SHI model, while those with an egalitarian culture favor the NHS, and individualistic cultures lean towards VHI.</p> Signup and view all the answers

What health care model did the UK adopt and which political orientation influenced this choice?

<p>The UK adopted the NHS, influenced by an egalitarian political orientation.</p> Signup and view all the answers

Which health care model was introduced in Germany and what type of government was in charge during its inception?

<p>Germany introduced the SHI model under Bismarck's conservative government in 1883.</p> Signup and view all the answers

Identify a country that adopted a universalist health care scheme and its corresponding government type.

<p>Canada adopted a universalist scheme in 1966 under a Liberal minority government supported by Social Democrats.</p> Signup and view all the answers

What model do individualistic cultures tend to favor and provide an example of a country that displays this model?

<p>Individualistic cultures tend to favor the VHI model, with the US as a primary example.</p> Signup and view all the answers

Which ideological orientation is associated with the introduction of the SHI model in Italy?

<p>The SHI model in Italy was instituted under Mussolini's authoritarian government in 1943.</p> Signup and view all the answers

Explain the significance of the year 1946 in the context of health care models in the UK and Sweden.

<p>In 1946, both the UK and Sweden introduced their respective universal health care models under Labour and Social Democratic governments.</p> Signup and view all the answers

List two countries that adopted the SHI model and the political orientation of their governments when they did so.

<p>Austria and Germany both adopted the SHI model under conservative governments.</p> Signup and view all the answers

What is the main difference between the SHI and NHS models of healthcare?

<p>The SHI model allows for reduced public intervention and is more aligned with conservative parties, while the NHS model advocates for extensive state intervention and promotes equality of treatment for all citizens.</p> Signup and view all the answers

How do competing interest groups influence health policy formulation?

<p>Competing interest groups such as governments, health professionals, and trade unions engage in conflicts which shape the development of health policies based on their relative strengths and the institutional rules of each national system.</p> Signup and view all the answers

What percentage of GDP does the United States spend on healthcare compared to the OECD average?

<p>The United States spends 16 percent of GDP on healthcare, significantly higher than the OECD average of 8.8 percent.</p> Signup and view all the answers

What percentage of the American population is uninsured, and how does this figure affect healthcare access?

<p>Approximately 16.7 percent of the population, or over 50 million Americans, are uninsured, which poses significant barriers to healthcare access.</p> Signup and view all the answers

Discuss the general sentiment of Americans regarding healthcare reform according to recent polls.

<p>Many Americans believe the healthcare system needs reform and recognize the problem of the uninsured, but they are hesitant to pay higher taxes and prefer private management over government involvement.</p> Signup and view all the answers

What are some challenges posed by the practices of insurance companies in the United States?

<p>Challenges include opportunistic behaviors such as denying coverage for pre-existing conditions, dropping clients, and cherry-picking healthy individuals.</p> Signup and view all the answers

Why might individuals with health insurance be resistant to changes in the system?

<p>Many insured individuals are generally satisfied with their quality of care and appreciate their freedom of choice, making them reluctant to accept potential reforms that could alter this.</p> Signup and view all the answers

What factors contribute to the complexity of health politics in different countries?

<p>The complexity arises from the interplay of ideas, interests, and institutional rules that shape the healthcare landscape and influence policy decisions.</p> Signup and view all the answers

Flashcards

Gatekeeping

A healthcare system where patients can only see specialists after being referred by their general practitioner (GP).

Gatekeeping Systems

Countries with gatekeeping systems require a referral from a GP to see a specialist. Examples include Australia, Denmark, and the UK.

Non-Gatekeeping Systems

Countries with non-gatekeeping systems allow patients to choose whether or not to see a specialist with or without a referral from a GP. Examples include Austria, France, and the US.

Patient Freedom of Choice

A healthcare system where patients have the freedom to choose their healthcare providers, often with choices between public and private options.

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Complete Freedom of Choice

Countries with complete freedom of choice allow patients to select any healthcare provider, including public and private options. Examples include Australia, Austria, and Germany.

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Free Choice among Public and Approved Private Providers

Countries with free choice among public and approved private providers allow patients to choose from public providers or a limited selection of private providers. Examples include Denmark, Finland, and the UK.

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Limited Choice

Countries with limited choice may have restrictions on provider selection, often with some level of government control. Examples include Hungary, New Zealand, and the US.

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Solo vs. Group Practice

General practitioners (GPs) can practice independently (solo practice) or as part of a group. Solo practices may have challenges with consistency and coordination while group practices can share resources and collaborate.

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Cultural Explanation for Healthcare Systems

The idea that the dominant political culture within a nation influences its healthcare system.

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VHI (Voluntary Health Insurance)

A healthcare system where individuals are responsible for purchasing health insurance and accessing medical care.

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SHI (Social Health Insurance)

A healthcare system financed through mandatory contributions from both employers and employees.

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NHS (National Health Service)

A healthcare system where the government is the primary provider of health services and funding comes from general taxation.

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Ideology and Healthcare Models

The political ideologies of ruling governments can influence the type of healthcare system implemented.

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VHI Model

This model emphasizes individual choice and responsibility for health insurance.

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NHS Model

This model prioritizes social solidarity and ensures access to healthcare for all.

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SHI Model

This model emphasizes shared responsibility and uses social insurance mechanisms for healthcare.

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Separated healthcare system

A healthcare system where financing and provision are managed separately. This means insurance funds are raised through various channels like taxes or contributions but are not directly used to deliver care, which is managed by independent providers.

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Integrated healthcare system

A healthcare system that combines financing and provision under a single, centralized organization. This means that the organization responsible for raising funds also delivers healthcare services, with a unified budget and administration.

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Universalist healthcare system

A healthcare system where all citizens are covered for a wide range of healthcare services, regardless of their ability to pay. This is typically funded through taxes or social insurance contributions.

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Social Health Insurance (SHI)

A healthcare system financed through mandatory contributions from individuals and employers, which funds healthcare services. This model is common in many European countries.

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Standard developmental path of healthcare systems

The core concept of healthcare that emphasizes a gradual progression of healthcare systems over time. This path typically starts with voluntary insurance, advances to mandatory social insurance, and eventually evolves towards universal healthcare coverage.

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Individual Mandate (Obamacare)

A requirement for all individuals to purchase health insurance or pay a penalty. Exemptions exist for religious reasons and low-income households. Penalties were abolished in 2019.

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Health Insurance Exchanges (Obamacare)

State-regulated marketplaces that allow individuals and small businesses to compare and purchase insurance plans.

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Federal Subsidies (Obamacare)

Financial assistance provided to low-income individuals and families up to 400% of the poverty level to help them afford healthcare.

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Insurance Company Regulations (Obamacare)

Regulations that require insurance companies to offer equal premiums to all applicants of the same age and location, regardless of gender or pre-existing conditions.

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Medicaid Expansion (Obamacare)

Expanding Medicaid coverage to include all individuals and families up to 138% of the poverty level.

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German Healthcare System

A social insurance system where most funding comes from contributions, with a smaller portion from general taxation and out-of-pocket payments.

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Statutory Health Insurance Funding (Germany)

The percentage of funding for the German healthcare system that comes from contributions to statutory health insurance.

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General Taxation Funding (Germany)

The percentage of funding for the German healthcare system that comes from general taxation.

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Health Politics

The idea that different political ideologies influence healthcare systems. Conservative and liberal parties often favor different systems, with the former preferring SHI and the latter supporting NHS.

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Health Policy Arena

Actors like government, healthcare professionals, unions, employers, political parties, and insurance companies compete to influence healthcare policy.

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Three I's: Ideas, Interests, Institutions

The concept that three factors - ideas, interests, and institutions - influence healthcare policies. Ideas represent the overarching political beliefs, interests encompass the goals of different groups, and institutions refer to the existing healthcare system.

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US Healthcare Spending

The highest healthcare spending among developed countries, with 16% of GDP allocated to healthcare.

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The Uninsured in the US

A significant issue in US healthcare, with over 50 million Americans lacking health insurance.

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Cost of Healthcare in the US

A major challenge in US healthcare, reflecting the high cost of health insurance premiums.

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Italy's Public-Private Healthcare Mix

The Italian healthcare system blends public and private services, with the National Health Service (SSN) providing around 51% of healthcare, while private providers contribute 49%.

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Funding Italy's Healthcare System

The National Health Service (SSN) in Italy is funded primarily (76%) through tax revenues, while the remaining 24% comes from private sources, including out-of-pocket payments and private health insurance.

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Why Italians Use Private Healthcare

People in Italy often opt for private healthcare services, primarily because of shorter waiting times, the ability to choose their doctor, and easier access.

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Private Health Insurance in Italy

A growing trend in Italy is the increasing use of private health insurance, with almost 30% of the population now having some form of supplementary health coverage.

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Private Providers in Italy's Healthcare Landscape

Private healthcare providers in Italy often work with the public sector through special agreements, allowing them to participate in the delivery of healthcare services.

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Healthcare Reforms in Italy

The Italian healthcare system has undergone significant reforms over the past three decades, with a focus on increasing competition and improving efficiency.

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Public vs Private Expenditure on Healthcare

The percentage of public healthcare spending compared to private healthcare spending across different OECD countries.

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Hospital Beds in OECD Nations

Compares hospital bed availability across different OECD countries.

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Study Notes

Healthcare Systems Models

  • Three fundamental models exist for healthcare organization: voluntary health insurance, social health insurance, and national health service.
  • These models vary in their funding mechanisms and organizational approach to healthcare provision.

Voluntary Health Insurance (VHI)

  • Individuals have the freedom to choose whether or not to purchase private health insurance.
  • Insurance policies are tailored to individual needs based on factors like income, health status, and risk tolerance.
  • Healthcare providers are typically independent from the insurance companies, with the insurers reimbursing providers.
  • Policyholders have considerable freedom in selecting healthcare providers.

Social Health Insurance (SHI)

  • The government mandates health insurance for specific occupational groups.
  • Sickness funds, non-profit organizations, manage worker contributions and provide reimbursements for medical expenses.
  • Health service providers remain separate entities, allowing citizens choice among them.
  • Germany was the first country to adopt this system.
  • The system is often structured on a territorial or occupational basis.
  • Over time, coverage has been extended to ever-larger groups, including families and pensioners.

National Health Service (NHS)

  • Healthcare provision is financed through general tax revenue.
  • The state manages and allocates resources for healthcare.
  • The system guarantees healthcare access to the entire population.
  • All citizens have a right to essential medical treatment.
  • Hospitals in this model are typically publicly owned, and physicians may also be public employees.

Funding Models

  • Simple market, Voluntary insurance, Targeted programs, Social health insurance, Mandatory residence insurance, Universalist model, Medical Savings Accounts

Simple Market

  • Healthcare providers and users interact directly without third party involvement.
  • Users pay directly to providers for each service rendered.
  • No insurers are involved

Voluntary Insurance

  • Citizens have the option to purchase private insurance.
  • Those without insurance pay for their services out-of-pocket.
  • Private insurers compete with each other, often with risk-rated premiums.

Targeted Programs

  • These programs are specifically designed for vulnerable populations, and are funded by general taxation.
  • Beneficiaries are usually those at greatest risk, such as low-income individuals, the elderly, minors, etc.

Social Health Insurance (continued)

  • The obligation to contribute is linked to occupation, not residency.
  • Usually multiple, competing sickness funds cater to workers within a specific profession.
  • In some countries, workers can choose among sickness funds.

Mandatory Residence Insurance

  • The state requires all residents to buy private health insurance to cover essential healthcare services.
  • Contributions are made through individuals' resources.
  • Multiple, competing, for-profit or non-profit insurers operate.

Universalist Model

  • Funding is achieved through general taxation.
  • The state gathers and manages healthcare resources.
  • Complete healthcare coverage for the entire population is guaranteed.

Medical Savings Accounts

  • Workers contribute a fixed or percentage amount to accounts.
  • Funds are used to reimburse healthcare costs.
  • Money not spent earns interest.

Countries and Their Unique Healthcare Systems

  • France, Canada, and Switzerland also have specific, detailed healthcare systems.

The US Healthcare System

  • Medicare covers American citizens over 65 and younger people with long-term disabilities.
  • Medicaid is a mean-tested program for low-income people.
  • CHIP provides insurance for low-income children whose earnings exceed Medicaid ceilings.
  • Other programs cover veterans, military personnel, federal employees, and other vulnerable groups.
  • The US health system is a combination of public and private programs and is highly variable.
  • Employer-based insurance is prominent, as well as private, individual policies.

The Uninsured

  • Uninsured rates and populations vary across the US, dependent on individual and familial circumstances.

Insurer-Provider Relationships

  • Providers are distinguished between indemnity, HMOs (Healthy Maintenance Organizations), and PPOs (Preferred Provider Organizations), with certain contractual relationships.

The Politics of Healthcare

  • Different models of healthcare are often related to ideological approaches and government structures.
  • Healthcare is shaped by the clashes between the government and competing interest groups.

Healthcare Systems In Selected Countries

  • Specific, detailed information regarding Germany, Canada, and Switzerland is available. The healthcare systems are more complex than they may seem at first glance. Countries often adopt a combination of different models to address the unique circumstances of their population.

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