Two Facets of Health Care Financing
extraction of funds from private households--employer, taxes, private
disbursement of funds from the insurer to the provider--direct from government, employer, individual, or through a managed care corporation
Financing the Collective Insurance Fund
we have a financial labyrinth which effectively hides the true costs of the system from us
Direct Financing by Households
tax credits to make it evener and easier--not everyone knows how to do the taxes--some people will not do it anyways counting on charity
Private employers as pumping stations
professional and economies of scale
only in america are the employeers directly invoved in the markets for health insurance and care
Disproportionate Tax Benefit
The free-lunch Myth
entitlement mentality for "free" employee paid for health care
Social Security Deception
Employeers paying for retierment benefits never had to commit to health care until recently
Government as a pumping station
taxation systems give the same "free lunch" belief
capitation would make a global centralized system much easier to run
slef-selection tends to destabilize over time
Disbursing Funds to Providers
Fee-for-Service Compensation
have to get hospitals and physicians to announce their billing schedule so you can compare them to other hospitals
Prepaid Capitaion
need a way to evaluate it
will be very strong complaining by the first few to get through
Conclusion: On the Vertiue of HIPCs