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Chapter 35 - The Economics Of Health Care


Chapter 35 Key Terms McConnell and Brue 14th Edition


deductibles

The dollar sum of (for example health care) costs which an insured individual must pay before the insurer begins to pay.


copayments

The percentage of (say health care) costs which an insured individual pays while the insurer pays the remainder.

fee for service

When doctors are paid separately for each service they perform, thereby providing an incentive to oversuggest health care services.

tax subsidy

A grant in the form of reduced taxes through favorable tax treatment; for example employer-paid health insurance is exempt from Federal income and payroll taxes.


“play or pay”

A means of expanding health insurance coverage by requiring employers to either provide insurance for their workers or pay a special payroll tax to finance insurance for uncovered workers.


national health insurance

A proposed program in which the Federal government would provide a basic package of health care to all citizens at no direct charge or at a low cost-sharing level. Financing would be out of general tax revenues.


preferred provider organizations

The doctors and hospitals that agree to provide health care to insured individuals at rates negotiated with an insurer.


health maintenance organizations

Health care providers which contract with employers insurance companies labor unions or governmental units to provide health care for their workers or others who are insured.

diagnosis-related-group system

A system wherein the hospital receives a fixed payment for treating each patient. The payment is associated with the one of several hundred carefully detailed diagnostic categories that best characterize the patient's condition and needs.


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