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  • Seminar 5 - Health Care

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    Alexandra De Maria
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    Health care must be rationed due to limited resources. In the UK, the National Health Service provides publicly funded health care through taxation. The National Institute for Health and Clinical Excellence (NICE) determines which treatments are cost-effective using quality-adjusted life years, and will only fund treatments under £30,000. Health care is also rationed in the US through insurance markets, which can exclude certain treatments or have high deductibles. Insurance markets for health care face problems as people may buy insurance only when they need expensive care.

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    Health care must be rationed due to limited resources. In the UK, the National Health Service provides publicly funded health care through taxation. The National Institute for Health and Clinical Excellence (NICE) determines which treatments are cost-effective using quality-adjusted life years, and will only fund treatments under £30,000. Health care is also rationed in the US through insurance markets, which can exclude certain treatments or have high deductibles. Insurance markets for health care face problems as people may buy insurance only when they need expensive care.

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    5 views2 pages

    Seminar 5 - Health Care

    Uploaded by

    Alexandra De Maria
    Health care must be rationed due to limited resources. In the UK, the National Health Service provides publicly funded health care through taxation. The National Institute for Health and Clinical Excellence (NICE) determines which treatments are cost-effective using quality-adjusted life years, and will only fund treatments under £30,000. Health care is also rationed in the US through insurance markets, which can exclude certain treatments or have high deductibles. Insurance markets for health care face problems as people may buy insurance only when they need expensive care.

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    Alexandra De Maria HEALTH CARE AND THE STATE

    You should know this: 1. Why must health care be rationed?

    Seminar 5

    Week 21

    Progressively they may have cemented rationing into the fabric of the NHS and protected it with an aura of untouchability. They are: 1. Almost total dependence of funding on taxation 2. Underfunding 3. Abnormally low user charges 4. Distaste for supplementary forms of health insurance 5. The efficiency delusion 6. A tolerant public with modest expectations (Redwood, 2000) The NHS cannot, and never has been able to, offer every treatment to everyone who needs it o Funded through taxes - not a bottomless pit of funds

    Cost of health care is on the rise = inefficient o Should be decreasing if efficient/scale economies

    Limited resources o o o Money spent on 1 patient = not spent on another Doctors Time opportunity cost of seeing 1 patient, rather than another Expensive treatments

    2. How is health care rationed in the U.K.? a. What is the role of NICE? National Institute for Health and Clinical Excellence Measure the benefits of treatments through QALYs o o o o Quality Adjusted Life Years Health person = 1/Dead = 0 can be considered worse off than dead e.g. locked-in-syndrome E.g. hip replacement how much extra life will it give the person?

    NICE determines what is efficient in the UK o Treatment must be below 30,000 for the NHS to pay

    3. How is health care rationed in the U.S.? 4. What are the problems with an insurance market for health care?

    Alexandra De Maria

    Seminar 5

    Week 21

    Some questions to think about: 1. Should health care be free at the point of delivery? Should it be free for people who smoke, are obese, have HIV, were involved in a car accident, are giving birth, want a health check up?

    2. Is it inequitable or inefficient or both to have a public health care system that allows patients to finance extra treatment themselves?

    3. If you or a loved one falls ill, what factors do you think should influence whether you (or some other patient) gets treated? Are waiting lists efficient?

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