Download Economics of Health Care Financing: The Visible Hand by Cam Donaldson PDF

By Cam Donaldson

This new version examines the economics of health and wellbeing care structures in a non-technical demeanour. it's written in a hugely obtainable demeanour for economists and non-economists alike. it's very well timed and contains the most recent proof of well-being care reforms and their implications from a few nations with diversified platforms.

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Sample text

For instance, relying on the goodwill of people to seek out those who are sick so as to contribute to the cost of their health care is impractical and too costly, in terms of time and effort, for those who would like to contribute. Likewise, charities suffer from a similar experience because people often do not 'get round to' making a contribution. Yet, if the exercise is rendered costless apart from the actual contribution made, more individuals would be prepared to make that contribution. The most efficient way of achieving this is through some mechanism of public health insurance or taxation.

The presence of a low-risk, uninsured group of people presents the potential for insurance companies to tailor premiums to levels of individual, rather than population, risk. This is 'experience rating'. If fine distinctions can be made, a premium will reflect assumed future risk level based perhaps on some idea of past history of personal and family health as a predictor for the future. As a result of this process, higher-risk groups (typically the lower-paid, elderly people and the chronically sick) will be required to pay higher experience-rated premiums to maintain coverage, premiums which they may not now be able to afford.

Even in the most marketorientated economies a common, everyday commodity like food is subjected to some level of government intervention in its financing, and sometimes in its provision. On the demand side of the market, income subsidies are provided to certain groups of people to give them the ability to purchase the basic necessities of life, including food. On the supply side, many countries have farming subsidies and employ a food inspectorate to monitor the standards of food and its packaging, and to impose restrictions on certain food imports while promoting their own exports.

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