Health Care Financing

Health care systems may be financed in various ways, including through government funding, taxation, out-of-pocket payments, private insurance, and donations or voluntary aid. RAND research explores the effects of corporate and government health care financing policies on such groups as patients, businesses, hospitals, and physician-providers.

Research conducted by: RAND Health

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The Public Option: Sorting Rhetoric from Reality

President Obama and several Congressional leaders have recently expressed support for the idea of allowing citizens to buy into a public insurance program as part of any health reform legislation. The intensity of the ensuing debate has been fascinating given the lack of specifics that have been offered by either side, writes Elizabeth A. McGlynn.

Journal Articles (64)

U.S. Spending on Complementary and Alternative Medicine During 2002-08 Plateaued, Suggesting Role in Reformed Health System — Jan 1, 2013

Use of and spending on complementary and alternative medicine have flattened out. Including providers of these services in new delivery systems such as accountable care organizations could help slow growth in national health care spending.

What It Will Take to Achieve the As-Yet-Unfulfilled Promises of Health Information Technology — Jan 1, 2013

HIT's disappointing performance primarily stems from sluggish adoption of health IT systems, systems that are not interoperable or easy to use, and failure of providers and institutions to do their part by reengineering care processes.

Price Elasticity of Expenditure Across Health Care Services — Dec 1, 2012

Policymakers in countries around the world are faced with rising health care costs and are debating ways to reform health care to reduce expenditures.

Changing Financial Incentives Can Improve Impact of Comparative Effectiveness Studies on Patient Care — Oct 9, 2012

Comparative effectiveness research conducted over the past decade has had a limited impact on the way medical care is delivered, but many opportunities exist to help doctors and others in the medical system translate such research into better patient care.

Posing a Framework to Guide Government's Role in Payment and Delivery System Reform — Sep 1, 2012

Innovative payment reform initiatives occur in both the public and private sector, but the optimal role in such reforms of the public sector, specifically the Centers for Medicare and Medicaid Services, is up for debate

Growth of Consumer-Directed Health Plans to One-Half of All Employer-Sponsored Insurance Could Save $57 Billion Annually — May 1, 2012

Enrollment is increasing in consumer-directed health insurance plans, which feature high deductibles and a personal health care savings account.

Survey Results Show That Adults Are Willing to Pay Higher Insurance Premiums for Generous Coverage of Specialty Drugs — Apr 1, 2012

This study estimated how healthy people value insurance coverage of specialty drugs, defined as high-cost drugs that treat cancer and other serious health conditions like multiple sclerosis, by quantifying willingness to pay via a survey.

The Financial Burden from Prescription Drugs Has Declined Recently for the Nonelderly, Although It Is Still High for Many — Feb 1, 2012

The financial burden of prescription drugs has declined recently for the nonelderly. The decrease is probably due to increased use of generic drugs. The financial burden remains high among those with public insurance and those with low incomes.

Impacts of Rising Health Care Costs on Families with Employment-Based Private Insurance: A National Analysis with State Fixed Effects — Jan 1, 2012

Rising health costs reduce employment-based private insurance availability and enrollment, and the financial protection provided by it, especially for middle-class families.

Take-up of Public Insurance and Crowd-Out of Private Insurance Under Recent CHIP Expansions to Higher Income Children — Jan 1, 2012

The CHIP expansions to children in higher income families were associated with limited uptake of public coverage.

Bundling Payments to Curb Health Care Costs Proves Difficult to Realize — Nov 7, 2011

Under bundled payments, doctors, hospitals, and other providers share one fee for treating all aspects of a procedure such as a hip replacement or a chronic disease like diabetes. The approach should eliminate unnecessary care and improve quality, but putting it into practice is proving to be more difficult than anticipated.

Can the Patient-Centered Outcomes Research Institute Become Relevant to Controlling Medical Costs and Improving Value? — Nov 1, 2011

Research sponsored by the Patient Centered Outcomes Research Institute can help patients make better decisions by comparing the effectiveness of alternative therapies, but it is constrained from considering the costs of therapies it compares.

A Decade of Health Care Cost Growth Has Wiped Out Real Income Gains for an Average US Family — Sep 1, 2011

This article translates aggregate numbers about health spending into concrete measures that consumers can relate to.

The Effects of Consumer-Directed Health Plans on Episodes of Health Care — Sep 1, 2011

About two-thirds of the cost savings from high deductible/consumer-directed health plans are from reductions in number of episodes; the remaining one-third of the savings are from reductions in costs per episode.

Medicare's Bundled Payment Pilot for Acute and Postacute Care: Analysis and Recommendations on Where to Begin — Sep 1, 2011

Medicare's National Pilot Program on Payment Bundling should use hip fracture and joint replacement as the conditions to include and use longer episodes, capturing a higher percentage of costs and hospital readmissions but adding little financial risk.

Factors Associated with Closures of Emergency Departments in the United States — May 18, 2011

This study found that the number of emergency departments operating in the US from 1990 to 2009 declined by 27%. EDs with safety-net status, for-profit ownership, and low profit margin were at higher risk of closure.

Small Firms' Actions in Two Areas, and Exchange Premium and Enrollment Impact — Feb 1, 2011

An analysis of two rules that allow small businesses to avoid participating in health reform concludes they will have only a minor impact because relatively few businesses are likely to take advantage of the options.

Small Firms' Actions in Two Areas, and Exchange Premium and Enrollment Impact — Feb 1, 2011

An analysis of two rules that allow small businesses to avoid participating in health reform concludes they will have only a minor impact because relatively few businesses are likely to take advantage of the options.

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