Article Figures & Tables
Figures
Fig. 1: Hypothetical distribution of per capita expenditures, in which individuals are given an entitlement represented by the lower line and are expected to pay all physician and hospital costs up to that level out of the entitlement. There are no copayments for physician and hospital costs above the catastrophic cost threshold, which, in this case, would be paid by the government. Spending that falls into the corridor between the entitlement and the catastrophic cost lines is the main target for creating efficiencies. Individuals must either forgo such expenditure or pay for it out of pocket.
The lines representing the entitlement and the catastrophic threshold can be set at different levels, and might vary by age and sex or by the individual's past health experience. The net financial effect depends upon 3 factors: the levels at which the entitlement and the catastrophic threshold are set; what individuals who spend less than their entitlement are allowed to do with the surplus; and how much expenditure falls into the corridor.
Fig. 2: Annual per capita expenditure (hospital and physician) by decile, Apr. 1, 1997, to Mar. 31, 2000.