chapter 7 the health care system. three models of health care: the medical model focus on diagnosis...
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Chapter 7
The Health Care System
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Three Models of Health Care: The Medical Model
• Focus on diagnosis and cure
• Care in hospital, doctor’s office, nursing home
• Drugs, surgery rehabilitation
• Physicians control most treatment
• Little focus on prevention or community-based care
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Three Models of Health Care: The Social Model
• Focus on person’s ability to function in the social world– Health is more than the absence of disease
• Focus on functional capacity
• Health care mostly takes place in community
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Three Models of Health Care: The Health Promotion Model
• Focus on disease prevention and reduced disability
• With support, some can regain lost abilities
• Improving fitness and well-being
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Figure 7.1 Hospital Discharge Rates, 2006
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The U.S. Health Care System Today
• History of Health Care for Older People– Few options until mid 1960s
• About ½ older people had health insurance
– Medicare program passed by Congress 1965– AMA opposed Medicare at the time
• Called it socialized medicine• Feared government control of physicians fees
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The U.S. Health Care System TodayMedicare
• Part A– Hospital Insurance– Funded by payroll tax– Eligibility– Benefits: 4 kinds of care
• Part B– Supplemental Medical Insurance
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The U.S. Health Care System TodayMedicare
– Funded by– Eligibility– Benefits
• Part D (2006)– Prescription Drug Discount Card– Has reduced some costs for some older
people
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Figure 7.2 How Is the U.S. Health Care Dollar Spent?
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Figure 7.3 Number of Medicare Beneficiaries, 1970–2050
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Figure 7.4 Total Medicare Expenditures 1970–2008
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Figure 7.5 Medicare Costs as a Share of Gross Domestic Product
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Table 7.1 Medicare Payments, Original Medicare Plan
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The U.S. Health Care System TodayMedicaid
• Began 1965
• Serves low income Americans, all ages
• Funded by federal and state governments
• Eligibility– Income and asset limits– Income and asset limits different for each
state
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Figure 7.6 Where the Medicaid Dollar for the Elderly Goes, 2002
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Figure 7.7 Funding for Long-Term Care, 2004
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The U.S. Health Care System TodayOther Health Care Plans
• Employer Sponsored Plans
• Medigap– Intended to reduce out-of-pocket costs due to
gaps in Medicare coverage
• Long Term Care Insurance– Vary widely in coverage and services
• Strong interest in buying LTC insurance
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Figure 7.8 Total Health Expenditures as a % of Gross Domestic Product
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The Cost of Care
• Since 1960 US leads developed nations in health care spending
• Costs expected to increase
• Federal, state, local governments paid nearly half the total health care bill in 2000
• Rising health care costs explain most government spending on older people
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Figure 7.9 Out-of-Pocket Health Care Costs
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The Rising Personal Cost of Health Care• Amount paid by individuals has increased,
despite federal payments
• Older people pay high out-of-pocket costs
• About 9% no coverage except Medicare
• Few have long term care insurance
• Results
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Public Dissatisfaction & Health Care Reform
• Cost of care is high; weak return on cost
• Health Care Reform: National Legislative Action 2010
• Gains & Losses for Medicare Beneficiaries
• Summary of the Legislation
• Structural Flaws in the System
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Institutional Care
• Insurance does not provide substantial nursing home benefits– Medicare– Medicaid
• Must spend down to qualify
– Private Long Term Care Insurance• Only pays about 45% of costs
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Table 7.2 Long-Term Care Expenditures for the Elderly
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Long Term Care: Community-Based Services
• In-Home care and Assisted Living
• Better community-based care accounts much of the decline in nursing home placement
• Olmstead Decision (1999)
• Types of HCBS
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Long-Term Care
• Long-Term Care Insurance: A Good Bet?
• Adult Day Care
• Respite Services
• Home Health Care Programs
• Changes in Funding to Control Costs
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Long Term Care: Managed Care
• Medical Care Settings– Some cost control– Capitated payments– Interdisciplinary approach– Early LTC planning– Keeps track of health records– Some focus on rehabilitation
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Disease Prevention & Health Promotion
• Prevention catching on in United States!
• Examples– No smoking in restaurants– Magazines on fitness– Salads and low fat items in fast food
restaurants– Water and air quality standards
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Beyond Fitness and Personal Health Promotion
• Typical health promotion efforts:
• Should also– Account for the social and economic contexts
of sickness– Account for environmental contexts
• Promotion and prevention must have impact on the production of illness
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Future Issues in Health Care
• Availability– Existence of services; “no-care zones”
• Accessibility– Can people get the services that do exist?
• Coordination– Case management needed– Need for integrated system
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