how much we spent on health care in US in 2013?
$2.9 trillion/year
How much of GDP do we pay for healthcare?
18% - per capita spending exceeds that of all other industrialized counties.
Paradox of US healthcare system
We treat preventable illness rather than invest in prevention.
Why do we cost so much?
- treatment vs. prevention
- Administrative costs
- prescription drug costs
- chronic diseases
In 2013, how many people are insured?
87% insured, 13% not insured. 68% of the uninsured cannot afford it.
How many US people have private insurance
68%
How many US people are covered by govt insurance
28%
Traditional fee-for-service plans: undamaged care is provided by
both commercial insurance companies and non-for-profit organizations
strengths of private insurance
greater flxibility, unrestricted access to physicians and treatment.
weakness of private insurance
physicians may provide more services/tests/treatment than needed
Types of private insurance
- traditional-fee-for-service plans
- managed care system
- managed care program
- health maintenance organization (HMOs)
- prefered provider organization.
- point-of-service plans)
- cosumer-directed health plans
goal of managed care program
- improve quality of health care with reduced costs
- job-based coverage has increased since 80s’
- by law, employers with over 25 employees must offer HMO membership as a n alternative to traditional health insurance.
health maintenance organization
pre-paid plan enrollees are members , fee per year provide all medical services members select primary care physician use plan providers or face penalty
Medicare
cover 65+ years old, about 95% seniors are covered
