40 Questions
How do insurers combat adverse selection in health insurance?
Using underwriting practices like health screenings
What mechanism do some health insurance systems use to ensure a broad and diverse risk pool?
Mandatory insurance for all citizens
What challenges do moral hazard and adverse selection present to insurance systems?
Efficiency and sustainability
Which strategy is NOT commonly employed to address the effects of moral hazard and adverse selection?
Random selection of insurance applicants
Why is it crucial to understand and mitigate the effects of moral hazard and adverse selection in insurance systems?
To provide financial protection and access to care for the widest possible population
What is the purpose of using underwriting practices like health screenings in insurance?
To assess the risk of applicants and combat adverse selection
How does mandatory insurance for all citizens help with adverse selection?
By making the risk pool broad and diverse
What role do incentives for healthy behaviors play in insurance systems?
Promoting broader participation in insurance
What is the main purpose of resource mobilization in health financing?
To generate revenue for healthcare systems
What is the primary function of resource allocation in health financing?
To purchase healthcare services from providers
What is the definition of health insurance schemes?
A system where risks and resources are pooled to spread healthcare costs
What is the main advantage of health insurance?
It reduces the financial burden of healthcare costs
What is the primary goal of health financing?
To increase healthcare accessibility
What is the main function of resource pooling in health financing?
To spread the financial burden of healthcare costs
What is the main advantage of risk pooling in health insurance?
It spreads the financial burden of healthcare costs across many individuals
What is the relationship between health insurance and risk pooling?
Health insurance involves pooling risks and resources for healthcare costs
What is the primary focus of allocative efficiency in healthcare?
What healthcare services to produce
What is the key difference between productive efficiency and allocative efficiency?
What to produce vs. how to produce
Which of the following is a characteristic of productive efficiency?
Focused on internal workings of healthcare providers
What is the main goal of cost-effectiveness in healthcare?
To maximize health outcomes
Why is equity an important consideration in healthcare resource allocation?
It promotes healthcare accessibility for all
What is the difference between outcome-oriented and process-oriented approaches in healthcare?
Outcome-oriented focuses on health outcomes, process-oriented on production process
Why are both allocative and productive efficiency necessary in healthcare?
To ensure efficient allocation of resources and production of healthcare services
What is the scope of allocative efficiency in healthcare?
Concerned with overall health needs of the population
What is the main difference between Diagnosis Related Groups (DRGs) and Capitation?
DRGs focus on hospital payments based on patient diagnosis, while Capitation involves payment per enrolled person.
What is a disadvantage specific to the Capitation payment model?
Risk of under-service if the payment is too low
Which payment model may result in administrative burdens due to coding complexity?
Diagnosis Related Groups (DRGs)
In which scenario does a healthcare system receive a fixed total budget for all services provided?
Global Budget
What is a common advantage shared by all three payment models outlined in the text?
Encourages efficiency and cost control
Which payment model specifically aims to promote strategic planning and service prioritization?
Global Budget
What is a primary disadvantage of the Capitation payment model?
May result in under-service if payment is too low
Which payment model might incentivize hospitals to avoid costly procedures to stay within the fixed payment rate?
Diagnosis Related Groups (DRGs)
What is the implied relationship between the immediacy of action needed and the demand curve for medical care?
It is less steep if immediate action is not needed and substitutes are relevant.
Why should medical care be perceived as a spectrum of services and goods?
To highlight its relevance in maintaining health over time.
How does the price of medical care impact the demand for healthcare services, according to the text?
It has a direct impact, particularly when insurance coverage is involved.
What type of demand is exemplified by individuals getting regular check-ups with a family physician?
Internal demand
In the context of healthcare services, what does external demand refer to?
The societal expectation for individuals to consume healthcare services.
Why is reducing the consumption of medical care mentioned as potentially leading to a deterioration in health?
As it disrupts the balance in immediate care needs and substitutes.
What is the relationship between the out-of-pocket price of healthcare services and the quantity demanded?
Inverse relationship
Why do vaccinations play a role in reducing healthcare costs for society as a whole?
They reduce the spread of infectious diseases.
Explore the concept of choosing health interventions for the greatest benefit and investing in cost-effective treatments. Learn about the differences between productive efficiency and allocative efficiency in healthcare.
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