1. Briefly explain the 'wealth effect '. In your explanation, please discuss and explain how this theory relates to the purchase of health insurance.
The ‘wealth effect’ is when an individual is less likely to purchase insurance, avoiding premiums and other payments, and saving their money to self insure, or use the money they saved on premiums and payments to pay whatever services they may need. The ‘wealth effect’ in relation to the purchase of health insurance has an inverse relationship. As a person’s wealth increases, their sensitivity to premiums decrease and are more likely to purchase health insurance. In other words, the weathier an individual is, the less of an issue insurance premiums become.
2. In 2004, there was nationwide litigation against several large not-for-profit health systems. Please explain the following: What was the reason for this action? Why did the lawsuit (mainly) targeted not-for-profit hospitals? Please identify the government response (federal, state and local level) to this occurrence.
In 2004, thirteen class action lawsuits had been filed in eight different states against not-for-profit hospital systems. In general, the reason for these lawsuits consisted of breach of contract, EMTALA violations, fraud, unjust enrichment, and civil conspiracy. In exchange for tax exemption status, the not-for-profit hospital systems were to provide affordable medical care to their patients. However, the plaintiffs, patients, were charged excessive amounts
Unlike the middle and poor classes, higher income earners are expected to pay greater sums of money as taxpayers to cover the expenses of treating poorer people. The number of services provided based on this increased payment is greater than what those covered previously received, though the services do not always meet the needs of the persons insured and rarely corresponds directly to the payment made by wealthier taxpayers. For example, the premium for people who are considered living beyond the poverty line is no more than 9.5% of their monthly income (Dunn 70).
The Health and Wealth connection distilled is our health will most commonly reflect from our amount of wealth. The wealthy can afford the cost of quality care and the time to take care of themselves. Within the textbook, Dimensions of Human Behavior Hutchison writes. Public health experts have long noted the association of poor clinical outcomes, in all body systems, with low income, low education, unsanitary housing, poor healthcare, on stable employment, and uncertain physical environment (Hutchison, 2015). Easily demonstrated throughout American society the rather dubious and is a somewhat perplexing phenomenon of the Health-and-Wealth connection theory. The gap between the haves and have-nots are ever expanding. Those who have the funding to pay for resources will pay to get those resources. And those who do not have sufficient funds to pay for said resources will, unfortunately, have to stand in the long lines to receive seemingly, deceptively, scarce resources.
The cost of health insurance has changed drastically over the years as it has become more expensive. Depending on personal characteristic, the cost of health insurance may vary. For instance, as individuals grow older the more expensive it becomes. In this case, health insurance is more costly because “older individuals require more health care” therefore “the cost of providing health care is rising” (Madura &Atlantic, 2012). Not only does this affect the high cost of health insurance, but the number of individuals uninsured. As stated by Madura and Atlantic (2012), “about one in every five workers is uninsured” and has increased since then because health insurance has become unaffordable. As a result, individuals tend to seek health care elsewhere as they can no longer
Health insurance is provided by Medicaid and Medicare to elderly and disabled people and poor children. People working for large companies receive health insurance through their employer. Unfortunately, people working for small businesses, those self-employed, and the working poor are left without options to purchase health insurance at an affordable cost. This creates a divide between the haves and have-nots in terms of health care. Those who have health insurance will access the care they need, but those who do not have insurance will go without. This may include primary care interventions such as immunizations and regular health screenings. Rising health care costs have a direct effect on the number of uninsured individuals and, therefore, a direct effect the number of individuals that can access care.
3. (TCO C). Some physicians and for-profit healthcare organizations in your area are refusing to treat Medicare and Medicaid patients for a variety of reasons. These controversial decisions present not only a major breakdown in the healthcare delivery system but also in the financing of healthcare for many individuals across the nation. Delineate at least three reasons that physicians have for refusing to participate in these governmental programs, as well as the impact this practice has on other areas of the healthcare delivery system. (Points : 25)
Next, we studied the financial structures of health care organizations. Specifically, we examined the structure of nonprofit healthcare organizations. I remember spending a good amount of time debating whether or not nonprofits should maintain their tax exempt status. As someone who had spent their entire professional career working for a nonprofit organization, I often viewed myself as the sole champion for these organizations. In sessions and on the discussion boards, I advocated that nonprofit healthcare organizations in most situation function as a safe net of the community and that the level of community benefits these organizations provide do justify the lost revenue for state and federal agencies.
The Health and wealth connection distilled is our health will most commonly reflect from our amount of wealth. The wealthy can afford the cost of quality care and the time to take care of them selves. Within the textbook, Dimensions of Human Behavior Hutchison writes. Public health experts have long noted the association of poor health outcomes, in all body systems, with low income, low education, unsanitary housing, in adequate healthcare, on stable employment, and unsafe physical environment (Hutchison, 2015). Easily demonstrated throughout American society the rather dubious and is somewhat perplexing phenomenon of the Health-and-Wealth connection theory. The gap between the haves and have-nots are ever expanding. Those who have the funding to pay for resources will pay to get those resources. And those who do not have adequate funding to pay for said resources will unfortunately have to stand in the long lines to receive seemingly, deceptively, scarce resources.
Most of the people who are uninsured are the working poor, which the overall costs of medical care can hurt them. By the means of doing their best, these people just can’t afford the insurance. Health care has become increasingly unaffordable for businesses and individuals. (Reese) Premiums grow several
Someone without health coverage are less likely to receive preventative care and therefore more likely to become ill which increases medical costs, [1].
This correlates with a higher population of women with chronic diseases, which increases mortality rates if they are uninsured and unable to pay for their medical needs. Furthermore, if the woman is insured but it costs her too much to regularly visit her doctor and a disease
Provena Hospitals owns and operates six hospitals including Provena Covenant Medical Center, the plaintiff, which the Illinois Department of Revenues, the defendant, denied the property tax exemption application. In 2002, Provena hospitals realized a net los of 4.8 million on revenues of 713.9 million. PCMC realized a net profit of 2.1 million on revenues of 113.4 million. PCMC waived 1.7 million charges for 302 patients under its sliding-scale charity care program. The cost of the serives provided (under the charity program) was $831,00, which was $268,00 less than the value of the property tax exemption. The calculated cost of the charity program was .723 percent of PCMC’s revenues. The legal principle at play is whether a medical institution
Moreover, the benefits of expanding coverage outweigh the costs for added services. [4] Safety-net care from hospitals and clinics improves access to care but does not fully substitute for health insurance. These findings are supported by much research, although some cautions are appropriate in using these results. People with health insurance are protected against uncertain and high medical expenses and are more likely to receive needed and appropriate health care. In addition, having health insurance is associated with improved health outcomes and lower mortality, so employees with health insurance are more likely to be productive workers. You do not pay income tax on health insurance benefits so it is more valuable per dollar than the same amount in taxable pay. [5]
Regarding the relationship between health insurance and demographics, an important proportion of links were obvious because were at the expense of profiles of eligibility. Otherwise, dominant links between types of coverage and economic variables explain the relationship of health insurance and persons’ income.
There is a vast economic gap between the rich and the poor and this creates a social unjust. The allocation of health services has no fairness and saying that this causes a weakness in the healthcare system. Public money tends to go to the wealthy for their services rather than the poor. "In 2012, the wealthiest fifth of Americans got 43 percent more health care ($1,743 more per person) than the poorest fifth of Americans, and 23 percent more care ($1,082 per person) than middle-income people,"("Wealthy Get More Health Care Than Other Americans). The spending of the poor has decreased while the spending of the wealthy has increased greatly.
For subsidies of health, the greater emphasis on curative health care expenditure often reflects a bias towards the better-off people whereas preventive health care expenditure with much larger externalities would clearly be of greater help to the economically weaker sections of the society.