Health Care Finance Exam #1

Front 1

Earliest involvement of federal Government

Back 1

Establishment of Marine Hospitals under Commerce Clause
Precursor of todays public health service with DHHS

Front 2

Pure Food and Drug Act (1906)

Back 2

Prohibited interstate commerce in misbranded and adultred drugs, food, and drink

Front 3

Before WWI

Back 3

Congress created Children's Bureau, initiated Quarintine Authority, Early worker safety legislation

Front 4

Children's Bureau (1912)

Back 4

Investigation and reporting on welfare of all children
Responsible for federal assistance to and leadership of child health and welfare programs

Front 5

Social Security Act (1935)

Back 5

Guaranteed income for elderly
Funded by FICA payrol tax

Front 6

Federal Insurance Contribution Act (FICA)

Back 6

deductible from paychecks and income that goes toward SS program and Medicare
Employees and employers responsible for sharing payments
Flat tax

Front 7

Hill Burton Act (1947)

Back 7

Authorized federal funds to pay for hospital construction in exchange for care of the poor

Front 8

Medicare (1965)

Back 8

Federal program providing hospital and medical service for the elderly
Part A: hospital care
Part B: professional services
Part C: Medicare supplemental insurance
Part D: prescription drugs

Front 9

Medicaid (1965)

Back 9

State/federal programe providing health care for the poor
Largest source of funding for medical and health related services for the poor
Each state establishes its own criteria
Medically needy-eligibly but have high income

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Environmental laws (60s-70s)

Back 10

Solid waste management, safe drinking water, lead paint prohibition

Front 11

Worker Safety Acts (60s-70s)

Back 11

Coal Mine health and Safety Act
Occupational Health and Safety Act
Federal Mine Safety and Health Act

Front 12

State Children's Health Insurance Program (SCHIP) (1990s)

Back 12

Health Insurance program for children
Provision of federal matching funds for states Medicaid programs to better meet the needs of uninsured children
ex: Hawk-i

Front 13

Almshouse/poorhouse

Back 13

Where sick or indigent were cared for in the late 18th century

Front 14

Health Care Costs

Back 14

Health care consumes 17.01% of GDP

Front 15

High Cost of Health Care

Back 15

Duplication of services
High cost of technology and pharmaceuticals
Lack of incentives to control costs
Health insurance insulates consumers from real cost of care
Heath care marketplace is not like the market for other goods and services-doesnt follow traditional laws of supply and demand

Front 16

Controlling Health Care Costs

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Prospective payment-flat fee on diagnosis
Cost Sharing-co-pay and deductibles
Caps on payments
Limits on benefits
Increasing low cost benefits for medicare
Eliminating federal subsides for hospital construction
Increasing income level for Medicaid eligibility

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Supply

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The amount of goods available
Quantities of goods or services firm is willing and able to offer at various prices during a given time period
Specialty health services supplied, increase demand

Front 18

Demand

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The interest and available market for a particular product
Increases when people have more money to spend or interest in a particular product
Shift: income, age of consumers, income coverage

Front 19

Cost

Back 19

The amount of money it takes to produce a good
Includes materials, assembly, transportation, advertising, marketing

Front 20

Price

Back 20

The amount charged for a good or service
Not necessarily the cost

Front 21

Price Elasticity

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The extent to which the price is subject to change by either supply or demand
Elastic= price declines and spending increases

Front 22

Expenditure

Back 22

Amount of money spent
Expenditure= Price x Quantity
Increase: better quality and more complex procedures are provided

Front 23

Change in Health Care System

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Costs are high
Large number of uninsured
Costs to federal gov of Medicare and Medicaid programs are unsustainable

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Robert Wood Johnson Foundation

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Not a federally funded healthcare program
Federal budget is relevant- fed got is largest single purchaser of health care services

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Paul Krugman

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Economist who called for reductions in health care spending
Control healthcare costs and raise revenue
Address the deficit

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Deficit

Back 26

How much you spend that you dont have

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Primary Care

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Basic care
Wellness, preventative
Outpatient
Primary Care Provider
Point of entry into the system

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Secondary Care

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Specialist referred to by primary care provider
Usually hospital
Short term

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Tertiary Care

Back 29

Highest most comprehensive level of care provided in a hospital setting
Highly specialized, multi specialty, high tech
Transplant
Specialty ICU
Large teaching hospitals, burn care, NICU

Front 30

Long-term Care

Back 30

Provided to elderly who need assistance with activities of daily living and supervision to live safely
Nursing homes, skilled nursing facilities, specialized care facilities
Promote maximal independence, maximize quality of life

Front 31

Hospice Care

Back 31

Provides end of life care to terminally ill

Front 32

Health Insurance

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Mechanism to protect against unpredictable loss
Mostly provided by employers
Increases the demand for healthcare
~50 mill uninsured
Uninsured=working poor

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Working Poor

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Full time/low wage job with no benefits

Front 34

Health Reform

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Individual mandate
Subsidize poor, tax high income people
Expand eligibility for Medicaid
Up to states (iowa/branstad resisted)
Unconstitutional =4
Constitutional= 5

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Main Case of National Debt

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Unfunded wars and tax cuts

Front 36

Elastic

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Price declines and spending increases

Front 37

Increasing Health Care Provision

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Outpatient and ambulatory services