Subjected to income and social security taxes cheaper

This preview shows page 4 - 5 out of 5 pages.

subjected to income and social security taxes - Cheaper to buy insurance before taxes than health care after taxes - Out-of-pocket price for health care with insurance lower than without insurance increases demand and reduces concern over prices 3. Fee-for-service - Reimbursement to hospitals and physicians based on costs plus extra fee - This type of payment created few incentives for efficiency or lower-cost approaches 4. Technological advances - New methods of diagnosis and treatment became available - New markets created - More expensive new technology replaced less expensive older methods The end result that had the most significant effect that the rise in prices. Both (1) and (2) had the most significant effect on the rise in prices. 1. Managed Care Backlash in late 1990s Choice over Cost-Savings Employers more concerned with attracting and retaining employees in tight labor market of the late 90s Provider Consolidation increased bargaining power Physicians & hospitals have formed larger groups and systems, gaining negotiating power to resist deeper discounts. Payments rising more rapidly now than in the mid 90s New Technology Managed care slowed but did not prevent the emergence of new, more effective drugs (statins, Lipitor; NSAIDs, Prilosec) Managed Care Backlash & Regulation 96% now in managed care plans - no more cream skimming Widespread media attention to cases of denied care “Drive-through deliveries” led to state mandates of min. LOS 4
Image of page 4

Subscribe to view the full document.

2. One-time Cost Savings - Decreased hospital days - Use of less costly settings for inpatient stays - Lower provider prices 5
Image of page 5
You've reached the end of this preview.
  • Spring '08
  • Harrington
  • medical care

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern