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Comment on "Medicare financing reform: a new Medicare premium".

Concern for equity of financing among the elderly must not ignore questions of equity between the needs of Medicare beneficiaries and those of the nonelderly . Modest income-related cost-sharing, combined with the merger advocated, might improve fairness , efficiency, and coverage. But fundamental reform must involve new tax policies.

Budgets↗

Dental care financing.

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American Dental Association↗

Cost-sharing and provider choice.

Restoring financial incentives to encourage patients to shop for the lowest prices for medical care underlies current procompetitive health financing proposals. This paper analyzes the impact of one such financial incentive--cost-sharing in health insurance--on patients' provider shopping behavior. Using data from the 'Health Insurance Study', the relationship of cost-sharing with the specialty type of the primary care provider and with the costliness of the selected provider is investigated. The results were mixed as to whether patients who have only catastrophic coverage seek lower priced physicians than patients who have free care; however, any differences were small. Even among the well-educated, who are likely to be more efficient than the less educated at obtaining comparative price information, the effects of cost-sharing on the costliness of the selected medical care provider were minimal.

Community Participation↗

Medicare benefits: a reassessment.

Changes in beneficiary cost-sharing provisions must be part of any multi-faceted strategy for Medicare's fiscal solvency . The current flawed benefit structure is seen as inefficient, inequitable , and contrary to prudent insurance principles. An income-related and selective increase in cost-sharing, combined with maximum liability, is proposed.

Aged↗

A new look at OEM (original equipment manufacturer) service agreements.

Next to personnel services, equipment maintenance is the second largest budgetary expense in large radiology departments. Because they are under constant pressure to contain costs, radiology administrators spend considerable time negotiating the best service at the lowest cost. Today, administrators have several options for imaging equipment maintenance: equipment maintenance insurance, in-house engineering, and various arrangements with original equipment manufacturers (OEMs) and independent service organizations (ISOs). In response to increased competition, OEMs have become more price-competitive with ISOs and have expanded their service menu and equipment maintenance insurance programs. OEM service menu options include: full service, tiered pricing, labor only, planned maintenance, full service with deductible, shared maintenance and extended warranty. Any type of service arrangement can be customized according to equipment age and sophistication, redundancy, income-producing potential, criticality of downtime and the strength and depth of the service organization. Even when vendor maintenance contracts are more expensive than purchasing service on a time-and-materials basis, they allow customers to budget accurately for the service of covered equipment. The authors' institution gets the best results for the best price from a judicious mix of maintenance options. Wise customers will explore many options before choosing a service agreement.

Budgets↗