HLTHAGE 1AA3 Lecture Notes - Lecture 6: Copayment, Moral Hazard

• School: McMaster University
• Department: Health, Aging and Society
• Course: HLTHAGE 1AA3
• Professor: Mat Savelli

Document Summary

Healthcare systems refer to rules that govern formal healthcare relationships. System shapes how and where healthcare is delivered and health status itself. Cost influence whether person uses formal or informal care. Increase trust using license which restricts who can become healthcare provider and what they can do. Regulated by the state and professional bodies. Builds trust but reduces labour pool (ex foreign trainers) Because healthcare unpredictable and costly, insurance exists in almost all systems although not all insurance is equal. Informal (ie. village ponies up and saves money) Formal (health insurance companies or public plans) Importantly, we don"t pay providers directly- third party does via collection pools. In universal, opting out is not permitted. Choosing among plans or enrolling in the same coverage. Some fear public insurance because of moral hazard problem; people go get more treatment if coverage is full= raising annual contributions for everyone.