Economic
As indicated by Barber, the increased life expectancy for Canadians presents a significant challenge to the delivery of health care. The primary demand factors which are commonly identified as determinants of rising health care costs are insurance and an aging population.1 Having more insurance allows people to consume more health care, and being older (therefore, presumably more in need of health care) predisposes them to do so. This paper will examine the relationship between the changing elderly demographic and the cost of health care, including institutionalized care. It will also discuss alternatives in restructuring the system to accommodate this population trend.II. Aging Escalates Health Care Costs - Substantiating this Claim The following elementary equation shows the basic calculation of total expenditure: E x N = Eold x Nold + Eyoung x Nyoung where E represents per capita expenditure the subscript young indicates the under age 65 demographic the subscript old indicates the over age 65 demographic (yellow book) In describing the relationship between aging and health care costs, health care economists primarily look at tw
Health care economists estimate the effect of age distribution changes on usage (and therefore cost) by applying age-specific utilization rates to the cohorts to which they apply.13 Though this is a relatively easy and direct procedure, it may not be a particularly valid one, say some analysts.14 The cause for questioning this method lies in the fact that technological change is naturally biased toward finding new and more expensive ways of treating the dying. Hence, increased health care spending, though correlated to an aging population, may not be directly caused by it. The increase in expenditures may rather be due to scientific progress in the area of health care for the elderly. 1951-1961 6466.5 8418.65 1238.75 16123.9 0.0768 By 1985, the traditional custodial-style mental institution had become obsolete. New mood-controlling drugs enabled health care professionals to treat psychologically distressed patients (such as those with Parkinson's dementia or Alzheimer's disease) on a short-term acute-care basis in general hospitals or on an out-patient or ambulatory basis. So, the burden of long-term care has been shifted, with the phasing out of custodial psychiatric care, to nursing homes, special care institutions, and hospitals. This claim is supported by the observation that a large proportion of nursing home residents are there primarily because of mental infirmity.12
Some common words found in the essay are:
Effect Spending, North American, Care Elderly, Indicators Catalogue, Insurance Plan, Canada Calculation, II2 Et, Paper Profile, Eyoung Nyoung, Albertans Age, health care, statistics canada, life expectancy, nursing home, age 65, health care spending, health economics, aging population, health expenditures, care spending, symptom threshold, health care insurance, statistical supplement alberta, supplement alberta health, hospitals medical care,
Approximate Word count = 3134
Approximate Pages = 13 (250 words per page double spaced)
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