Question

For this assignment you will read the scenario below: You are the President of the United States, and your first term ends in a year. The cost-control mechanism you instituted 2 years ago, based on patient cost sharing and managed competition, has not worked, and the American people are upset about persistent health care inflation. You are preparing for a major television address on health care costs. Based on this scenario you will develop a 10-12 PowerPoint that includes the following:

1. A definition of patient cost sharing and managed competition. What are these practices and what is the expected outcome? (answer Only 1)

2. An explanation of whether these strategies are considered ‘painful’ or ‘painless’ cost controlling mechanisms

3. A proposal on either the expansion of current cost-sharing programs and more regulations to control costs or the elimination of the two current control mechanisms in favor of new ones.

Answer 1

ANSWER

COST SHARING

Cost sharing in health care, means that when the patient has to pay a part of the health care cost. Even though they have some health insurance, a part may not be covered under this scheme and they have to pay a part of cost spent for the medical aid. The amount has to be paid depends upon the health scheme that the people has selected and also depends on the health care provider and their plans.

MANAGED COMPETITION

Applying micro economics by using the rules of competition, managed competition means that it is a purchasing strategy on which the consumers and the employees must acquire the maximum value. Managed competition depends upon the comprehensive (all- embracing) care organizations which integrate the the financing and the delivery. This will avoid the unwanted competition among the insurers to over the price.

COST EFFECTIVE ANALYSIS { PAINFUL/ PAINLESS}

The cost effective analysis, denotes that it measure the net cost of providing a service and the outcomes obtained through it. And to compare whether it is worthier than other. So the medical practitioner has to decide whether it is really worthier than other.

Painless controls doesn't directly affect the clinical care. Because it rounds around the other measure, like to restrict the increase over price. And the painful measures directly sacrifice the medically benefited services.

NEW IDEAS

To extend the current cost sharing mechanisms, and to reduce more burden over the government and more funds must be released to the indigent group of peoples and also to the disabled citizens. And also to control the galactic increase in cost of health care. And every citizen must be covered under insurance schemes and must receive uncompensated health care.