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Health Care Policy
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Introduction Why health care policy matters
The problem in (sort of) 3 charts
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Health in America US vs. the world Emphasis on elderly
Health care vs. health
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Life Expectancy!
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Infant Mortality
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Life expectancy after 80
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The U.S. Health Care System
Complexity of system
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The U.S. Health Care System
Fee for Service Managed Care Government subsidized care
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Problems with the U.S. System: Cost
High relative cost
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Health Care and GDP
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Problems with the U.S. System: Cost
Fee-for-service system Technology Market Failure Aging public Medical culture Prescription Drugs Administrative costs It’s the prices, stupid What it is not
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Retail Price Indexes for Basket of In-Patent Pharmaceuticals, 2010 US is set at 100
Price level This certainly seems to be true for pharmaceuticals. This chart shows findings from an analysis of IMS Health data by Jerry Anderson at John Hopkins University. It shows that prescription drugs are more expensive in the U.S. than in other countries – even though drugs are pretty much the same in whichever country they’re taken: we’re just paying more for them. THE COMMONWEALTH FUND Note: Calculations weighted relative to U.S. consumption patterns. U.S. retail prices were discounted from manufacturer prices according to the rebates obtained by the Medicaid program. Source: P. Kanavos, A. Ferrario, S. Vandoros et al., "Higher U.S. Branded Drug Prices and Spending Compared to Other Countries May Stem Partly from Quick Uptake of New Drugs," Health Affairs, April (4):753–61.
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Diagnostic Imaging Prices, 2013
Dollars ($US) MRI Dollars ($US) CT Scan (abdomen) Notes: US refers to the commercial average. MRI refers to magnetic resonance imaging; CT refers to computed tomography. Source: International Federation of Health Plans, 2013 Comparative Price Report.
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Total Hospital and Physician Costs, 2013
Dollars ($US) Appendectomy Dollars ($US) Bypass Surgery Notes: US refers to the commercial average. Appendectomy prices reflect a blend of inpatient and outpatient prices based on relative utilization in each setting. Source: International Federation of Health Plans, 2013 Comparative Price Report.
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Spending on Health Insurance Administration per Capita, 2012 Adjusted for Differences in Cost of Living Dollars ($US) * 2011. Source: OECD Health Data 2014.
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Spending per Hospital Discharge, 2012 Adjusted for Differences in Cost of Living
Dollars ($US) * 2011. ** 2010. Source: OECD Health Data 2014.
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Spending per Hospital Discharge, 2012 Adjusted for Differences in Cost of Living
Dollars ($US) * 2011. ** 2010. Source: OECD Health Data 2014.
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Problems with the U.S. System: Access
Inadequate Access Why so many uninsured? Maldistribution of resources Employer-based issues Rationing
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Rationing the wait
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Problems with the U.S. System: Quality
Quality in cross-national perspective
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Problems with the U.S. System: Quality
Lack of Access Focus on sickness instead of health Overspecialization
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Contemporary Policy Medicare Medicaid ACA
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Affordable Care Act/ “ObamaCare”
Goals Basics/Three-legged stool What it’s not Early Assessment “Repeal and Replace” and ACA under President Trump
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Further reform? The long-term cost problem Lessons from abroad
Policy Options Single-payer “Medicare for all”? “Gradual” single payer/Other public options Employer-based reforms Expanded individual market reforms So, what happens?
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Reforms/International Lessons
Single Payer Plan Employer Mandates Socialized Medicine Individual Mandates Future of Health Care Reform?
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