Health Care Delivery
in the United States

      Chapter 13
Introduction
• Health care delivery in U.S. is unlike other
  developed countries
  • Is delivered by an array of providers in a
    variety of settings
  • Is paid for in a variety of ways
• Is U.S. health care a “system?”
History of Health Care Delivery in the U.S.
• Self-care has been a category of health care
  throughout history and today
  • Assumed self-care occurs before seeking
    professional help
• From colonial times through late 1800’s,
  anyone trained or untrained could practice
  medicine
• Past medical education not as rigorous as
  today
History of Health Care Delivery in the U.S.
• Early medical education not grounded in
  science; experience-based only, prior to 1870
• Most care was provided in patients’ homes
• Hospitals only in large cities and seaports
  • Functioned more in a social welfare manner
  • Not clean; unhygienic practice
• Almshouses
• Pesthouses
Health Care Delivery in the
        Late 1800’s – Early 1900’s
• Care moved from patient’s home to
  physician’s office and hospital
  • Building and staffing better; designed for
    patient care; trained people; medical supplies
  • Reduced travel time
• Science had bigger role in medical education
• Mortality decline due to improved public
  health measures
Health Care Delivery in the
        Late 1800’s – Early 1900’s
• Early 1920s chronic diseases passed
  communicable as leading causes of death
• New procedures: X-ray, specialized surgery,
  chemotherapy, ECG
• Training: doctors and nurses more specialized
• 1929 – 3.9% GDP on health care
• Two party system – patients and physicians
  • Physicians collected own bills, set and adjusted
    prices based on ability to pay
Health Care Delivery – 1940s and 1950s
• WWII impact
  • Due to wage restrictions employers used health
    insurance to lure workers
  • Huge technical strides in 1940s and 1950s
• Hill-Burton Act
• Improved procedures, equipment, facilities
  meant rise in cost of health care
• Concept of health care as basic right vs.
  privilege
Health Care Delivery – 1960s
• Late 1950s had overall shortage of quality care
  and maldistribution of health care services
• Increased interest in health insurance
• Third-party payment system became standard
  method of payment
• Cost of health care rose
• Increased access, little expense for those with
  insurance; those without unable to afford care
• 1965 Medicare and Medicaid
Health Care Delivery – 1970s
• Health Maintenance Organization Act of 1973
• National Health Planning and Resources
  Development Act of 1974
  • Health Systems Agencies in place to cut costs
    and prevent building unnecessary facilities and
    purchasing unnecessary equipment
Health Care Delivery – 1980s
• Reagan and Congress eliminated Health
  System Agencies
• Deregulation of health care delivery
• Proliferation of new medical technology
• Questions in medical ethics
• Elaborate health insurance programs
Health Care Delivery – 1990s
• American Health Security Act of 1993
• Managed care
  • Achieve efficiency
  • Control utilization
  • Determine prices and payment
• 1996 – U.S. health care bill $1 trillion; 13.6%
  GDP
• CHIP
Health Care Delivery in the 21st Century
• 2010 – U.S. health care costs $2.6 trillion;
  17.3% GDP
  • Health care costs outpacing inflation for past
    few decades
     • America spends more per capita annually on
       health care than any other nation
• Still no national Patient Bill of Rights
• Health Savings Accounts
• 2010 – Affordable Care Act
Health Care Structure
• Spectrum of health care delivery
  • Various types of care
• Types of health care providers
• Health care facilities and their accreditation
Spectrum of Health Care Delivery
•   Population-based public health practice
•   Medical practice
•   Long-term practice
•   End-of-life practice
Population-Based Practice
• Interventions aimed at disease prevention and
  health promotion
• Health education
  • Empowerment and motivation
• Much takes place in governmental health
  agencies
  • Also occurs in a variety of other settings
Medical Practice
• Primary medical care
  • Clinical preventive services; first-contact
    treatment; ongoing care for common conditions
• Secondary medical care
  • Specialize attention and ongoing management
• Tertiary medical care
  • Highly specialized and technologically
    sophisticated medical and surgical care
  • For unusual and complex conditions
Long-Term Practice
• Restorative care
  • Provided after surgery or other treatment
     • Rehab care, therapy, home care
     • Inpatient and outpatient units, nursing homes,
       other settings
• Long-term care
  • Help with chronic illnesses and disabilities
  • Time-intensive skilled care to basic daily tasks
  • Nursing homes and various settings
End-of-Life Practice
• Services provided shortly before death
• Hospice care
  • Terminal diagnosis
  • Variety of settings
Spectrum of Health Care Delivery
Types of Health Care Providers
• 14.5 million workers in U.S. (10.4% of pop.)
  • 41.3% in hospitals; 25.6% in ambulatory care
    settings; 16.3% in nursing/residential facilities
  • Over 200 types of careers in industry
     • Independent providers
     • Limited care providers
     • Nurses
     • Nonphysician practitioners
     • Allied health care professionals
     • Public health professionals
Independent Providers
• Specialized education and legal authority to
  treat any health problem or disease
• Allopathic and osteopathic providers
• Nonallopathic providers
Allopathic and Osteopathic Providers
• Allopathic providers
  • Produce effects different from those of diseases
  • Doctors of Medicine (MDs)
• Osteopathic providers
  • Relationship between body structure & function
  • Doctors of Osteopathic Medicine (DOs)
• Similar education and training
• Most DOs work in primary care
Nonallopathic Providers
• Nontraditional means of health care
• Complementary and Alternative medicine
  (CAM)
  • Used together with conventional medicine,
    therapy is considered “complementary”; in
    place of considered “alternative”
  • Chiropractors, acupuncturists, naturopaths, etc.
  • Natural products, mind-body medicine,
    manipulation, etc.
Limited (or Restricted) Care Providers
• Advanced training in a health care specialty
• Provide care for a specific part of the body
• Dentists, optometrists, podiatrists,
  audiologists, psychologists, etc.
Nurses
• Over 4 million working in nursing profession
• Licensed Practical Nurses (LPNs)
  • 1-2 years of education in vocational program
  • Pass licensure exam
• Registered Nurses (RNs)
  • Completed accredited academic program
  • State licensure exam
• Advanced Practice Nurses (APNs)
  • Master or Doctoral degrees
Nonphysician Practitioners
• Practice in many areas similar to physicians,
  but do not have MD or DO degrees
• Training beyond RN, less than physician
• Nurse practitioners, certified midwives,
  physician assistants
Allied Health Care Professionals
• Assist, facilitate, and complement work of
  physicians and other health care specialists
• Categories
  •   Laboratory technologist/technicians
  •   Therapeutic science practitioners
  •   Behavioral scientists
  •   Support services
• Education and training varies
Public Health Professionals
• Work in public health organizations
• Usually financed by tax dollars
• Available to everyone; primarily serve
  economically disadvantaged
• Public health physicians, environmental health
  workers, epidemiologists, health educators,
  public health nurses, research scientists, clinic
  workers, biostatisticians, etc.
Health Care Facilities & Their Accreditation
• Physical settings where health care is provided
• Inpatient care facilities
  • Patient stays overnight
• Outpatient care facilities
  • Patient receives care and does not stay
    overnight
Inpatient Care Facilities
• Hospitals, nursing homes, assisted-living
• Hospitals often categorized by ownership
  • Private – profit making; specialty hospitals
  • Public – supported and managed by
    government jurisdictions
  • Voluntary – not-for-profits; ½ of U.S. hospitals
• Teaching and nonteaching hospitals
• Full-service or limited-service hospitals
Clinics
•   Two or more physicians practicing as a group
•   Do not have inpatient beds
•   For-profit and not-for-profit
•   Tax funded
    • Public health clinics, community health centers
    • Over 1,100 community health centers in U.S.
    • Support primary health care needs of
      underserved populations in the U.S.
Outpatient Care Facilities
• Care in a variety of settings, but no overnight
  stay regardless of why patient is in the facility
  • Health care practitioners’ offices, clinics,
    primary care centers, ambulatory surgery
    centers, urgent care centers, services offered in
    retail stores, dialysis centers, imaging centers
Rehabilitation Centers
• Work to restore function
• May be part of a clinic or hospital, or
  freestanding facilities
• May be inpatient or outpatient
Long-Term Care Options
• Nursing homes, group homes, transitional
  care, day care, home health care
• Home health care
  • Growing due to restructuring of health care
    system, technological advances, and cost
    containment
Accreditation of Health Care Facilities
• Assists in determining quality of health care
  facilities
• Process by which an agency or organization
  evaluates and recognizes an institution as
  meeting certain predetermined standards
• Joint Commission
  • Predominant accrediting organization
Health Care System Function
• U.S. “system” unique compared to other countries
  • Recent decades’ challenges led to new
    legislation
• Affordable Care Act
  • Goal: to put American consumers back in
    charge of their health coverage and care
  • Signed into law March, 2010; changes to be
    implemented 2010-2020; some effective mid-
    2010; bulk go into effect 2014
Structure of the Health Care System
• U.S. structure – complex, expensive, many
  stakeholders, intertwined policies, politics
• Major issues:
  • Cost containment, access, quality
     • All equally important; expansion of one
       compromises other two
Access to Health Care
Access to Health Care
• Variety of means to gain access
  • Insurance coverage and generosity of coverage
    are major determinants of access to health care
  • 2009 – 46.3 million uninsured (15.4%); 58.5
    million uninsured for part of the year (19.4%)
  • Likelihood of being uninsured greater for
    those: young, less education, low income,
    nonwhite
  • Greatest reason for lack of insurance: cost
Access to Health Care
• 8 out of 10 uninsured are from working
  families
• Medically indigent
• Working poor
• Major component of Affordable Care Act is
  increasing the number of Americans with
  health insurance
Quality of Health Care
• Doing the right thing, at the right time, in the right
  way, for the right people, and having the best
  results
   • Quality health care should be:
      • Effective
      • Safe
      • Timely
      • Patient centered
      • Equitable
      • Efficient
The Cost of and Paying for Health Care
The Cost of and Paying for Health Care
•   Reimbursement
•   Fee-for-service
•   Packaged pricing
•   Resource-based relative value scale
•   Prepaid health care
•   Prospective reimbursement
Health Insurance
• A risk and cost-spreading process, like other
  insurance
  • Cost is shared by all in the group
  • Generally “equitable,” but increased risk may
    lead to increased costs
Health Insurance Policy
•   Policy
•   Premiums
•   Deductible
•   Co-insurance
•   Copayment
•   Fixed indemnity
•   Pre-existing condition
    • HIPPA
Types of Health Insurance Coverage
The Cost of Health Insurance
• Cost of insurance mirrors cost of care
• In U.S., burden falls primarily on the
  employer, then the employee
  •   Increased worker share of premium
  •   Raising deductibles
  •   Increasing prescription co-payments
  •   Increasing number of exclusions
• Cost of policy determined by risk of group and
  amount of coverage provided
Self-Funded Insurance Programs
• Programs created for/by employers rather than
  using commercial insurance carriers
• Many benefits to the employer
• Generally for larger companies, unless low-
  risk employees
Health Insurance Provided by the
                Government
• Government health insurance plans only available to
  select groups
      • Medicare
      • Medicaid
      • Children’s Health Insurance Program
      • Veterans Administration benefits
      • Indian Health Services
      • Federal employees
      • Health care for the uniformed services
      • Prisoners
Medicare
• Covers more than 46.5 million people
• Federal health insurance program for those:
  • 65+, permanent kidney failure, certain disabilities
• SSA handles enrollment
• Contributory program through FICA tax
• Four parts
  • Hospital insurance (Part A), medical insurance
    (Part B), managed care plans (Part C), prescription
    drug plans (Part D)
Medicare
• Part A – mandatory; has deductible & co-
  insurance
• Part B – those in part A automatically enrolled
  unless decline; has deductible & co-insurance
• Part C – offered by private insurance companies;
  not available in all parts of U.S.
• Part D – optional; run by insurance companies;
  monthly premiums; large number of plan
  available; complex to navigate
• Uses DRGs
Medicaid
• Health insurance program for low-income; no
  age requirement
• 46+ million covered by Medicaid
• Eligibility determined by each state; very
  costly budget item for states
• Noncontributory program
CHIP
• Created in 1997 for 10 years
  • Reauthorized in 2009 through 2013
     • Funding assisted by increase in federal excise
       tax rate on tobacco
• 2009 – 7.8 million children enrolled
• Targets low-income children ineligible for
  Medicaid
• State/federal program
Problems with Medicare and Medicaid
• Programs created to help provide health care
  to those who might have impossibilities of
  obtaining health insurance
• Recurrent problems:
  • Some providers do not accept Medicare or
    Medicaid as forms of payment
  • Medicare/Medicaid fraud
Supplemental Health Insurance
• Help cover out-of-pocket costs not covered
  through primary insurance
  •   Medigap
  •   Specific-disease insurance
  •   Fixed-indemnity
  •   Long-term care insurance
       • Preserve financial assets, prevent need for
         family or friends to provide care, enable people
         to stay independent longer, easier to go into
         facility of choice
Who pays for long-term care?
Managed Care
• Goal to control costs by controlling health care
  utilization
• 2010 – 135 million enrolled in managed care plan
• Managed by MCOs
   • Have agreements with providers to offer
     services at reduced cost
• Common features – provider panels, limited
  choice, gatekeeping, risk sharing, quality
  management and utilization review
Types of Managed Care
• Preferred provider organization (PPO)
• Exclusive provider organization (EPO)
• Health maintenance organization (HMO)
  • Staff model HMO
  • Independent practice association (IPA)
  • Other HMO models
Other Arrangements for
           Delivering Health Care
• National health insurance
  • A system in which the federal government
    assumes responsibility for health care costs of
    entire population; primarily paid for with tax
    dollars
  • U.S. only developed country without national
    health care plan
  • Seven failed attempts at national health care in
    U.S. over past 70 years
• State health plans
Health Care Reform in the United States
• Consumer-directed health plans (CDHPs)
  • Consumer responsibility for health care
    decisions with tax-sheltered accounts
  • Health savings accounts
  • High reimbursement arrangements
• Affordable Care Act
Discussion Questions
• How does payment for health care services
  affect the various types of health care
  providers now and in the future?
• What changes will need to occur for all U.S.
  citizens to have affordable health insurance?
• Is the Affordable Care Act going to effectively
  combat the numerous problems within the U.S.
  health care system?

Ch13 outline

  • 1.
    Health Care Delivery inthe United States Chapter 13
  • 2.
    Introduction • Health caredelivery in U.S. is unlike other developed countries • Is delivered by an array of providers in a variety of settings • Is paid for in a variety of ways • Is U.S. health care a “system?”
  • 3.
    History of HealthCare Delivery in the U.S. • Self-care has been a category of health care throughout history and today • Assumed self-care occurs before seeking professional help • From colonial times through late 1800’s, anyone trained or untrained could practice medicine • Past medical education not as rigorous as today
  • 4.
    History of HealthCare Delivery in the U.S. • Early medical education not grounded in science; experience-based only, prior to 1870 • Most care was provided in patients’ homes • Hospitals only in large cities and seaports • Functioned more in a social welfare manner • Not clean; unhygienic practice • Almshouses • Pesthouses
  • 5.
    Health Care Deliveryin the Late 1800’s – Early 1900’s • Care moved from patient’s home to physician’s office and hospital • Building and staffing better; designed for patient care; trained people; medical supplies • Reduced travel time • Science had bigger role in medical education • Mortality decline due to improved public health measures
  • 6.
    Health Care Deliveryin the Late 1800’s – Early 1900’s • Early 1920s chronic diseases passed communicable as leading causes of death • New procedures: X-ray, specialized surgery, chemotherapy, ECG • Training: doctors and nurses more specialized • 1929 – 3.9% GDP on health care • Two party system – patients and physicians • Physicians collected own bills, set and adjusted prices based on ability to pay
  • 7.
    Health Care Delivery– 1940s and 1950s • WWII impact • Due to wage restrictions employers used health insurance to lure workers • Huge technical strides in 1940s and 1950s • Hill-Burton Act • Improved procedures, equipment, facilities meant rise in cost of health care • Concept of health care as basic right vs. privilege
  • 8.
    Health Care Delivery– 1960s • Late 1950s had overall shortage of quality care and maldistribution of health care services • Increased interest in health insurance • Third-party payment system became standard method of payment • Cost of health care rose • Increased access, little expense for those with insurance; those without unable to afford care • 1965 Medicare and Medicaid
  • 9.
    Health Care Delivery– 1970s • Health Maintenance Organization Act of 1973 • National Health Planning and Resources Development Act of 1974 • Health Systems Agencies in place to cut costs and prevent building unnecessary facilities and purchasing unnecessary equipment
  • 10.
    Health Care Delivery– 1980s • Reagan and Congress eliminated Health System Agencies • Deregulation of health care delivery • Proliferation of new medical technology • Questions in medical ethics • Elaborate health insurance programs
  • 11.
    Health Care Delivery– 1990s • American Health Security Act of 1993 • Managed care • Achieve efficiency • Control utilization • Determine prices and payment • 1996 – U.S. health care bill $1 trillion; 13.6% GDP • CHIP
  • 12.
    Health Care Deliveryin the 21st Century • 2010 – U.S. health care costs $2.6 trillion; 17.3% GDP • Health care costs outpacing inflation for past few decades • America spends more per capita annually on health care than any other nation • Still no national Patient Bill of Rights • Health Savings Accounts • 2010 – Affordable Care Act
  • 13.
    Health Care Structure •Spectrum of health care delivery • Various types of care • Types of health care providers • Health care facilities and their accreditation
  • 14.
    Spectrum of HealthCare Delivery • Population-based public health practice • Medical practice • Long-term practice • End-of-life practice
  • 15.
    Population-Based Practice • Interventionsaimed at disease prevention and health promotion • Health education • Empowerment and motivation • Much takes place in governmental health agencies • Also occurs in a variety of other settings
  • 16.
    Medical Practice • Primarymedical care • Clinical preventive services; first-contact treatment; ongoing care for common conditions • Secondary medical care • Specialize attention and ongoing management • Tertiary medical care • Highly specialized and technologically sophisticated medical and surgical care • For unusual and complex conditions
  • 17.
    Long-Term Practice • Restorativecare • Provided after surgery or other treatment • Rehab care, therapy, home care • Inpatient and outpatient units, nursing homes, other settings • Long-term care • Help with chronic illnesses and disabilities • Time-intensive skilled care to basic daily tasks • Nursing homes and various settings
  • 18.
    End-of-Life Practice • Servicesprovided shortly before death • Hospice care • Terminal diagnosis • Variety of settings
  • 19.
    Spectrum of HealthCare Delivery
  • 20.
    Types of HealthCare Providers • 14.5 million workers in U.S. (10.4% of pop.) • 41.3% in hospitals; 25.6% in ambulatory care settings; 16.3% in nursing/residential facilities • Over 200 types of careers in industry • Independent providers • Limited care providers • Nurses • Nonphysician practitioners • Allied health care professionals • Public health professionals
  • 21.
    Independent Providers • Specializededucation and legal authority to treat any health problem or disease • Allopathic and osteopathic providers • Nonallopathic providers
  • 22.
    Allopathic and OsteopathicProviders • Allopathic providers • Produce effects different from those of diseases • Doctors of Medicine (MDs) • Osteopathic providers • Relationship between body structure & function • Doctors of Osteopathic Medicine (DOs) • Similar education and training • Most DOs work in primary care
  • 23.
    Nonallopathic Providers • Nontraditionalmeans of health care • Complementary and Alternative medicine (CAM) • Used together with conventional medicine, therapy is considered “complementary”; in place of considered “alternative” • Chiropractors, acupuncturists, naturopaths, etc. • Natural products, mind-body medicine, manipulation, etc.
  • 24.
    Limited (or Restricted)Care Providers • Advanced training in a health care specialty • Provide care for a specific part of the body • Dentists, optometrists, podiatrists, audiologists, psychologists, etc.
  • 25.
    Nurses • Over 4million working in nursing profession • Licensed Practical Nurses (LPNs) • 1-2 years of education in vocational program • Pass licensure exam • Registered Nurses (RNs) • Completed accredited academic program • State licensure exam • Advanced Practice Nurses (APNs) • Master or Doctoral degrees
  • 26.
    Nonphysician Practitioners • Practicein many areas similar to physicians, but do not have MD or DO degrees • Training beyond RN, less than physician • Nurse practitioners, certified midwives, physician assistants
  • 27.
    Allied Health CareProfessionals • Assist, facilitate, and complement work of physicians and other health care specialists • Categories • Laboratory technologist/technicians • Therapeutic science practitioners • Behavioral scientists • Support services • Education and training varies
  • 28.
    Public Health Professionals •Work in public health organizations • Usually financed by tax dollars • Available to everyone; primarily serve economically disadvantaged • Public health physicians, environmental health workers, epidemiologists, health educators, public health nurses, research scientists, clinic workers, biostatisticians, etc.
  • 29.
    Health Care Facilities& Their Accreditation • Physical settings where health care is provided • Inpatient care facilities • Patient stays overnight • Outpatient care facilities • Patient receives care and does not stay overnight
  • 30.
    Inpatient Care Facilities •Hospitals, nursing homes, assisted-living • Hospitals often categorized by ownership • Private – profit making; specialty hospitals • Public – supported and managed by government jurisdictions • Voluntary – not-for-profits; ½ of U.S. hospitals • Teaching and nonteaching hospitals • Full-service or limited-service hospitals
  • 31.
    Clinics • Two or more physicians practicing as a group • Do not have inpatient beds • For-profit and not-for-profit • Tax funded • Public health clinics, community health centers • Over 1,100 community health centers in U.S. • Support primary health care needs of underserved populations in the U.S.
  • 32.
    Outpatient Care Facilities •Care in a variety of settings, but no overnight stay regardless of why patient is in the facility • Health care practitioners’ offices, clinics, primary care centers, ambulatory surgery centers, urgent care centers, services offered in retail stores, dialysis centers, imaging centers
  • 33.
    Rehabilitation Centers • Workto restore function • May be part of a clinic or hospital, or freestanding facilities • May be inpatient or outpatient
  • 34.
    Long-Term Care Options •Nursing homes, group homes, transitional care, day care, home health care • Home health care • Growing due to restructuring of health care system, technological advances, and cost containment
  • 35.
    Accreditation of HealthCare Facilities • Assists in determining quality of health care facilities • Process by which an agency or organization evaluates and recognizes an institution as meeting certain predetermined standards • Joint Commission • Predominant accrediting organization
  • 36.
    Health Care SystemFunction • U.S. “system” unique compared to other countries • Recent decades’ challenges led to new legislation • Affordable Care Act • Goal: to put American consumers back in charge of their health coverage and care • Signed into law March, 2010; changes to be implemented 2010-2020; some effective mid- 2010; bulk go into effect 2014
  • 37.
    Structure of theHealth Care System • U.S. structure – complex, expensive, many stakeholders, intertwined policies, politics • Major issues: • Cost containment, access, quality • All equally important; expansion of one compromises other two
  • 39.
  • 40.
    Access to HealthCare • Variety of means to gain access • Insurance coverage and generosity of coverage are major determinants of access to health care • 2009 – 46.3 million uninsured (15.4%); 58.5 million uninsured for part of the year (19.4%) • Likelihood of being uninsured greater for those: young, less education, low income, nonwhite • Greatest reason for lack of insurance: cost
  • 41.
    Access to HealthCare • 8 out of 10 uninsured are from working families • Medically indigent • Working poor • Major component of Affordable Care Act is increasing the number of Americans with health insurance
  • 42.
    Quality of HealthCare • Doing the right thing, at the right time, in the right way, for the right people, and having the best results • Quality health care should be: • Effective • Safe • Timely • Patient centered • Equitable • Efficient
  • 43.
    The Cost ofand Paying for Health Care
  • 44.
    The Cost ofand Paying for Health Care • Reimbursement • Fee-for-service • Packaged pricing • Resource-based relative value scale • Prepaid health care • Prospective reimbursement
  • 45.
    Health Insurance • Arisk and cost-spreading process, like other insurance • Cost is shared by all in the group • Generally “equitable,” but increased risk may lead to increased costs
  • 46.
    Health Insurance Policy • Policy • Premiums • Deductible • Co-insurance • Copayment • Fixed indemnity • Pre-existing condition • HIPPA
  • 47.
    Types of HealthInsurance Coverage
  • 48.
    The Cost ofHealth Insurance • Cost of insurance mirrors cost of care • In U.S., burden falls primarily on the employer, then the employee • Increased worker share of premium • Raising deductibles • Increasing prescription co-payments • Increasing number of exclusions • Cost of policy determined by risk of group and amount of coverage provided
  • 49.
    Self-Funded Insurance Programs •Programs created for/by employers rather than using commercial insurance carriers • Many benefits to the employer • Generally for larger companies, unless low- risk employees
  • 50.
    Health Insurance Providedby the Government • Government health insurance plans only available to select groups • Medicare • Medicaid • Children’s Health Insurance Program • Veterans Administration benefits • Indian Health Services • Federal employees • Health care for the uniformed services • Prisoners
  • 51.
    Medicare • Covers morethan 46.5 million people • Federal health insurance program for those: • 65+, permanent kidney failure, certain disabilities • SSA handles enrollment • Contributory program through FICA tax • Four parts • Hospital insurance (Part A), medical insurance (Part B), managed care plans (Part C), prescription drug plans (Part D)
  • 52.
    Medicare • Part A– mandatory; has deductible & co- insurance • Part B – those in part A automatically enrolled unless decline; has deductible & co-insurance • Part C – offered by private insurance companies; not available in all parts of U.S. • Part D – optional; run by insurance companies; monthly premiums; large number of plan available; complex to navigate • Uses DRGs
  • 53.
    Medicaid • Health insuranceprogram for low-income; no age requirement • 46+ million covered by Medicaid • Eligibility determined by each state; very costly budget item for states • Noncontributory program
  • 54.
    CHIP • Created in1997 for 10 years • Reauthorized in 2009 through 2013 • Funding assisted by increase in federal excise tax rate on tobacco • 2009 – 7.8 million children enrolled • Targets low-income children ineligible for Medicaid • State/federal program
  • 55.
    Problems with Medicareand Medicaid • Programs created to help provide health care to those who might have impossibilities of obtaining health insurance • Recurrent problems: • Some providers do not accept Medicare or Medicaid as forms of payment • Medicare/Medicaid fraud
  • 56.
    Supplemental Health Insurance •Help cover out-of-pocket costs not covered through primary insurance • Medigap • Specific-disease insurance • Fixed-indemnity • Long-term care insurance • Preserve financial assets, prevent need for family or friends to provide care, enable people to stay independent longer, easier to go into facility of choice
  • 57.
    Who pays forlong-term care?
  • 58.
    Managed Care • Goalto control costs by controlling health care utilization • 2010 – 135 million enrolled in managed care plan • Managed by MCOs • Have agreements with providers to offer services at reduced cost • Common features – provider panels, limited choice, gatekeeping, risk sharing, quality management and utilization review
  • 59.
    Types of ManagedCare • Preferred provider organization (PPO) • Exclusive provider organization (EPO) • Health maintenance organization (HMO) • Staff model HMO • Independent practice association (IPA) • Other HMO models
  • 60.
    Other Arrangements for Delivering Health Care • National health insurance • A system in which the federal government assumes responsibility for health care costs of entire population; primarily paid for with tax dollars • U.S. only developed country without national health care plan • Seven failed attempts at national health care in U.S. over past 70 years • State health plans
  • 61.
    Health Care Reformin the United States • Consumer-directed health plans (CDHPs) • Consumer responsibility for health care decisions with tax-sheltered accounts • Health savings accounts • High reimbursement arrangements • Affordable Care Act
  • 62.
    Discussion Questions • Howdoes payment for health care services affect the various types of health care providers now and in the future? • What changes will need to occur for all U.S. citizens to have affordable health insurance? • Is the Affordable Care Act going to effectively combat the numerous problems within the U.S. health care system?