While it has become almost prohibitive for most individuals to finance their own medical expenses without any support from an employer or an insurer, the burden on these agencies has also been a cause of concern whereby many governments and employers have gradually started encouraging individuals to become responsible for bearing at least partial cost of medication.
Another problem has been tremendous inflation in medical field due to individuals using their medical insurance irresponsibly or immorally as is a preferred terminology. Most insurees are not bothered to moderate medical expenses primarily because costs are being borne by others and not themselves (moral Hazard). Further, medical practitioners have themselves been particularly irresponsible in advising individuals regarding medical treatments with a view to making monetary profits since it didn't matter to anyone (except insurers and employers) as to how much money was spent on medical treatment.
Such a situation cannot be expected to go on for ever. Led by Singapore in 1980s, a new model was brought into effect called Medical Services Account or MSA. This required partial and compulsory contribution from the individual and was supported by the employer or the insurer beyond certain limits for some catastrophic ailments requiring expensive treatments. The model has since been adopted by many countries across the world with mixed results and varying attitudes among individuals, medical practitioners and even governments.
This paper attempts to highlight salient features of the Medical Savings Account policy adopted by many countries and bring out various advantages and disadvantages of MSA for an individual, employers and governments to choose best possible medical care option for meeting individual requirements.
MEDICAL CARE REQUIREMENTS
The medical care requirements of individuals are met through various choices available to an individual including whether to have insurance at all, choosing the insurer, right to choose particular benefits, physician or hospital and so on. MSA comes in a kind of medical benefit fund or account where the individual is contributing and paying for his own routine expenses up to a certain level, while for high deductible and catastrophic diseases, the contribution comes from the savings account up to a certain level and thereafter supplemented fully by the insurer or employer.
The surplus/unused balance in these personal accounts may be used differently as per individual plans at the end of the coverage periods. In most such accounts, supplementary assistance doesn't begin unless some basic laid down amount has been exceeded for most out patient treatments but some expensive outpatient services and most in-patient diseases are covered. The premise here is that consumers can afford minor outpatient treatments on their own and being responsible for financial consequences themselves, they will seek best available market price, avoid injudicious medical consumption and demand better quality of care for the price.
Medical Savings Accounts allow for tax-free deposits by employers and individuals and allow seniors availing medical insurance to switch
Demand for consumer-directed health care is growing among purchasers of care, and early evidence about its effects is beginning to emerge. Studies to date are consistent with effects predicted by earlier literature: There is evidence of modest favourable health selection and early reports that consumer-directed plans are associated with both lower costs and lower cost increases…
An insurance company pays the medical expenses of an employee while the employer pays for the insurance premium which means that the employee’s wage is also reduced. Consumer driven health plans (CDHC) is an insurance plan that allows employees or individuals to use their own health savings accounts or health reimbursement arrangements to pay directly for health care medical expenses, while still their highly deductable health insurance pays for high medical expenses that they could incur
President George Bush signed the Medicare Prescription, Improvement, and Modernization Act into a law, in 2003. This paved way for the expansion of medical savings accounts, and implemented tax incentives that aimed at encouraging clients to adopt the high-deductible health plans.
The conclusion from this study states that individuals and the society have equal roles in controlling the healthcare outcomes. It is evidently clear from the discussion that the individuals are the ones which constitute a society and therefore any effort to improve the health situations in a country should start from the individual level.
ASSESS THE CURRENT MOVE TOWARDS COMPETITION AND CHOICE IN HEALTH CARE IN TERMS OF THE EFFICIENCY VS. EQUITY TRADEOFFIntroduction Choice and competition are among the fundamental models of health service delivery that of recently, are being adopted by most countries for their important role of meeting the demand existing in the modern healthcare system.
It is true although to some extent that individual do tend to have unhealthy lifestyle and adopt negligent behaviour towards their health. However, there also happen to be several environmental and structural causes behind such practices that are ignored by the concept of individual responsibility altogether.
In this study, the rationale that triggers persons in preferring general practitioners has been evaluated with respect to the tangible statistics. Retort to the postal survey (sixty seven percent) (Melvin et al, 1999) were incorporated as components of the
During this time, an injurer would offer a payment to his victim a certain amount of money which they negotiated in order for the victim to avoid revenging. Every civilisation and country has had to recognize and define crime within their own value
The author states that there is a choice of selecting a less expensive quality health service. More individuals are enrolling into consumer driven health plan because it lacks the high deductable factor of other insurance plans and also the consumer has a choice in the health care service to be provided, at a cost effective price.
The relationship between resource allocation and cost is always reflected on pricing signals. To allocate scarce resources, the market economy highly depends on price signals which can only be projected by different costing methods. The relationship is that scarce resources have the potential to command higher costs than abundant resources.
1 pages (250 words)Essay
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