Nobody downloaded yet

An Economist's Account of the Existence of Moral hazard in the healthcare sector, and describe the mechanisms necessary to tac - Essay Example

Comments (0) Cite this document
Summary
An Economist’s Account of the Existence of ‘Moral Hazard’ in the Healthcare Sector, And the Mechanisms Necessary to Tackle Its Consequences Name: University: Course: Tutor: Date: Introduction The issue of moral hazard has been contentious for a long time…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
An Economists Account of the Existence of Moral hazard in the healthcare sector, and describe the mechanisms necessary to tac
Read TextPreview

Extract of sample "An Economist's Account of the Existence of Moral hazard in the healthcare sector, and describe the mechanisms necessary to tac"

Download file to see previous pages However, it is argued that the existence of the excessive utilization of these systems is due to the absence of a financial barrier to control the demand, and presence of financial arrangements on the supply side, which enables providers to supply wasteful amounts. Generally, unregulated, competitive markets result in private health insurance, which contributes to the concept of more insurance, which helps reduce health risks, but at the same time, increases demand and cost. In this regard, Nyman (2003) argued that most economists view the idea of controlling the supply side as a possible way of alleviating this problem. With such deliberations, it has been difficult for both the policy makers and economists to measure the level of demand and supply considered ideal in the market. In light with this, initiatives have been formulated in order to counteract moral hazard. Consumer moral hazards counter policies In order for policies to respond to consumer moral hazards, various issues have to be put into consideration without necessarily focusing on financial ones. The use of primary-care doctors as the gateway to preventing overuse of hospital services has been endorsed by many high income countries (Culyer and Newhouse 2000). On the other hand, the same modality has been endorsed by lower income countries by way of using bare-foot doctors. Nevertheless, numerous measures have been designed to counteract consumer moral hazards. Co-payments Co-payments have been utilized by a number of countries to exert some financial burden on the consumer in order to discourage unnecessary use of health care. This involves several schemes, which differ on the basis of the financial arrangement (Sexton 2010). Nevertheless, individual scheme is composed of flat rate change for each unit of service, a deductable akin to excess, and co-insurance. One of the most notable contributions of co-payments comes from the famous health insurance implement (HIE). In this particular experiment, families that participated in the experiment were randomly assigned one of the different free-for-service insurance plans. The free for service plans involved different levels of cost sharing. Covered expenses included most medical services. Another set of the plan involved free access to inpatient services. The outcome of the experiment indicated that utilization responds to amounts paid out of pocket. Per capita total expenses on the free recorded 45 percent higher than those on the plan with a 95 percent co-insurance, however, spending rates on the rest of plans was on average. On the other hand, outpatient expenses on the provided free plan recorded an increase of 67 percent higher than those on the 95 percent co-insurance plan. The findings from this experiment indicated that an increase in the user price will lead to a decrease in demand. In this regard, it is apparent that implementing charges would lead to doctors concentrating more on those who can afford to pay (Sexton 2010). However, the implication is that those more in need tends to have less access to services. This becomes the problem of the approach advocated by RAND study. This is arguably true because in aggravate, the figure of those more in need of service and able to pay is replaced by those less in need and unable to pay. The other important issue of concern is whether the response of demand for health care to adjustment in its prices is the same or different for several groups in society (Nyman 2003). It is also necessary to ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“An Economist's Account of the Existence of Moral hazard in the Essay”, n.d.)
An Economist's Account of the Existence of Moral hazard in the Essay. Retrieved from https://studentshare.org/business/1455407-provide-an-economistyies-account-of-the-existence
(An Economist'S Account of the Existence of Moral Hazard in the Essay)
An Economist'S Account of the Existence of Moral Hazard in the Essay. https://studentshare.org/business/1455407-provide-an-economistyies-account-of-the-existence.
“An Economist'S Account of the Existence of Moral Hazard in the Essay”, n.d. https://studentshare.org/business/1455407-provide-an-economistyies-account-of-the-existence.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF An Economist's Account of the Existence of Moral hazard in the healthcare sector, and describe the mechanisms necessary to tac

Hazard

...Hazard communication Schneid, Thomas & Schumann, Michael. Legal Liability: A Guide for Safety And Loss Prevention Professionals. New York: Jones & Bartlett Learning, 2006. Print. Schneid & Schumann evaluate the increase in legal risks caused by hazardous substances. The authors aim at informing chemical handlers of associated risks, rights, and accountability in dealing with chemicals. According to Schneid & Schumann, “the purpose of the hazard assessment element of a hazard communication program is to determine the identity and the location of hazardous chemicals at a facility or workplace” (104). Therefore, hazardous...
17 Pages(4250 words)Essay

Describe Wilson's Moral Diplomacy policies

...of the United States. According to the text, implementation of the moral policies in the United State improved the international affairs among other democrats in the sense that the social, political and economic sectors of the respective nations were improved leading to standardized living styles in the nations (James, Brian, Christine, Mark & Michael, 149-476). The president used the fact that United State is a leading participant in the world economy to convince, and force other nations to submit to his moral diplomacy to improve the nation’s economic relations with other countries. Considering the article, The National Experience: A History of the United States (Pt. 1 & 2), the...
5 Pages(1250 words)Research Paper

Kierkegaard's account(s) of faith

...turn of events, defying reason it had to happen through positive belief in the divine power and through infinite passion. . (Sands 25) What objections might be made to Kierkegaard’s account(s) of faith, and how might he answer them? The objection that can be made to Kierkegaard’s account of faith is that by writing from the view-point of an unbeliever, Kierkegaard hoped to ‘beguile’ readers into recognising their own necessity to convert into Christianity. . (Sands 17) Another objection raised against Kierkegaard’s account of faith is “Kierkegaard's treatment of religious belief is that it fails to distinguish between someone who has a justified belief and someone who is...
3 Pages(750 words)Essay

Moral Hazard and the Financial Crisis

...the short term goals deciphering disregard for the long-run sustainability of the economic components not only in the national context but also in the periphery of international trade. To be specific, moral hazards related with the policy conducts of IBRD caused a direct affect on the political cycle of national as well as international businesses making the crisis situation more expanded (Dreher, “Does the World Bank Cause Moral Hazard and Political Business Cycles?”). International Monetary Fund (IMF) implemented funding policies in terms of bailouts were also not without the criticism by economists on the grounds of moral...
8 Pages(2000 words)Research Paper

Healthcare sector in U.S

...?Running Head: FINAL PAPER Final Paper of the of the of the College INTRODUCTION The significance of this report has come about after the spending has been cut by the U.S government on the healthcare sector. This action by the government has stressed the insurance companies because the government is cutting the amount by 40% that was given to the insurance companies for the protection of the human health. After confronting with this situation the board of directors of an insurance company has asked the chief operating officer to submit a report that would include ways of meeting with the impact of this spending cut by the government while still being sensitive to the needs and health of the patients and...
9 Pages(2250 words)Essay

Working in the healthcare sector

...? Creating a positive relationship between nursing professionals and patients al affiliation Creating a positive relationship between nursing professionals and patients 1.0. Introduction The relationship between healthcare professionals and patients greatly influences the outcome of healthcare services. Gone are the days when healthcare providers used paternalistic means to care for patientsby imposing their decisions on the patients. In fact, according to Wheeler (2013, p.27) patient care at the moment places more emphasis on the need to respect the patient’s freedom and involve them in the decision making process. Particularly, nursing professionals who are mostly charged with providing care services to patients should ensure... of...
4 Pages(1000 words)Assignment

OH&S-Hazard audit & control

...OH&S - Hazard Audit and Control Prepared by Submitted to Word count Introduction A hazard can be described as a situation with potential of causing the injury or illness. The hazards in ware house are regarding the heavy load lifting, dangerous goods and damage to the property. The risk can be claimed as the likelihood of exposure to a hazard. This may be due to an injury or a disease, To avoid the above mentioned risks, the OHS can be implemented by the employers. It assures the workers the guarantee about their health and safety in the work place. The health and safety of the workers should be the responsibility of employer,...
8 Pages(2000 words)Essay

Leadership in The Healthcare Sector

...for finding solutions of their management-employee problems. Main Discussion The Evolution of Leadership in the Healthcare Sector Past Manning states that " to create added value for its customers by reducing the prices charged for health care services provided and by determining the needs and wants of patients in the most accurate way possible". (Manning, 2003) We have to note that many analysts have attempted to calculate the value of health by assessing what individuals are willing to pay for specific health settlement. Economists naturally measure the value of possessions by examining the prices of products and services traded in the marketplace. However, because private markets for...
17 Pages(4250 words)Essay

Describe hazard, risk, and outrage

...Hazard, Risk and Outrage Hazard, Risk and Outrage In Occupation and Environmental Epidemiology, hazard is “the potential to cause harm while risk is the likelihood of harm” (Agius, 2009). A hazard in work environments would mean a source of potential damage or harm on something or someone (Canadian Center for Occupational Health and Safety, 2009). On the other hand, risk is the chance that a person will be harmed if exposed to a hazard. Outrage is “a powerful feeling of resentment or anger aroused by an injury, insult, or injustice” (Definitions.net, n.d.). One alternative to gasoline for automobiles is the use of straight vegetable oil (SVO). There...
2 Pages(500 words)Essay

Economist

...in relation to theology." The Metaphysics led Alfred to ethics, specifically a Sidgwickian version of utilitarianism; ethics, on the other hand, led Alfred to economics. This was so because economics played an essential role in the provision of the preconditions for the improvement of the working class. Marshall’s ethical views continued to be a dominant force in his thinking even though he turned to economics (Marshall & Palgrave Connect, 2013). During his time, Marshall was viewed as the most influential economist. In his book Principles of Economics (1881), Marshall brought out the ideas of supply and demand, marginal utility and cost of production into a single whole. As an extension to what he had done, he brought...
4 Pages(1000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic An Economist's Account of the Existence of Moral hazard in the healthcare sector, and describe the mechanisms necessary to tac for FREE!

Contact Us