Physician Behavior and Payment Systems

Physician Behavior and Payment Systems

Impact of deductibles and co-payments on patient health seeking behavior

More than $2 trillion are spent by U.S on health care or $7026 per capita in 2006 (Catlin, Aaron et al. 2008). This is estimated around twice as much in UK, Canada, Australia, Japan and Germany.

In US, spending is healthcare in the overall economy is growing more than the double rate. This boosts the health care insurance premiums, which puts a great deal of pressure on employers. Most employers try providing healthcare facilities to the employees under 65 and some avoid providing it at all. Since, the premiums are so high, if the patients try to pay themselves, it would take most or all of their income. Thus, they try to get insured which increases the rate of uninsured people. Running health costs can heavily strain government budgets as well as families. In US, the average family premium was $12,106 in 2007 whereas the average premium on individuals reached $4,479 (Employer Health Benefits, 2006).

However, it is appreciated when countries spend most of their G.D.P on health care. David Cutler of Harvard, who is an analyst, believes that improved quality of life and decreased mortality are dividends of the additional investment. For governments, rise in health spending is good sign as this spending is returned to the government in the forms of hospital and clinic taxes. However, the patients argue that they are not able to afford anything else due to the health care spending. Since the cost has shifted mostly to the employers, it has led to an aggressive marketing of deductible health plans even though it is argued that these deductibles are needed because of a delay of care. Their purpose is to make consumers aware of their medical costs and therefore ...