Exploring Health, Socio-Political Issues in Age Care: User Pays System
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This essay examines the user pays model in Australian aged care, analyzing its advantages and disadvantages concerning health and socio-political issues. It discusses how the user pays model affects access to healthcare services for the aging population, highlighting potential improvements in quality and equity while acknowledging financial burdens for some. The essay also explores stakeholder involvement, including the government, private sector, and consumers, in funding and providing healthcare services. Furthermore, it assesses the impact of the user pays model on service and resource allocation, concluding that while it may lead to better healthcare services and resource management, it could also result in higher costs for consumers. The document is available on Desklib, a platform offering various study resources for students.
Health and Socio-Political Issues in Age Care
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RUNNING HEAD: HEALTH CARE 1
INTRODUCTION
Primarily, the user pay model is premised on the principle that the consumer be
responsible for the cost of the services they are to receive. This approach is being adopted in the
healthcare system in Australia for the aged persons. The pay model approach to healthcare seeks
to accomplish equity (horizontal).With the user pay model of care, quality and access of heath
care services to the aging Population in Australia is likely to improve. However, like any other
model of payment, the user pays model has its advantages and disadvantages. Inevitably, the
procedure for resource allocation and service provision under the user pays models is changing
and likely to lead to equitable and quality aged health care services .The user pay model of care
can be considered all stakeholder inclusive.
ADVANTAGES OF THE USER PAY MODEL OF CARE
Noteworthy, under the Users pay model, the aged population get to enjoy healthcare
services under the comfort of their homes(Smith,-hamilton,2016).This user payment system is
good for the aged population because it is able to ensure constant health care to the aging
population whether the government subsidies exist or not. With the other government funded
subsidies, some aged persons were at the mercy of government funding and would lose out on
the services if the funding run out. Under the user payment model, the healthcare are services are
brought closer to the aging population. Aging persons are able to receive medical services under
familiar environment which is better for recovery for some aging patients. In addition, following
the introduction of the User pays model, there is reduced public expenditure into healthcare by
the Australian government(‘Ageing and the …N .d).Before the implementation of the user pays
model, most healthcare services for the aged was fully funded by the government. Following the
INTRODUCTION
Primarily, the user pay model is premised on the principle that the consumer be
responsible for the cost of the services they are to receive. This approach is being adopted in the
healthcare system in Australia for the aged persons. The pay model approach to healthcare seeks
to accomplish equity (horizontal).With the user pay model of care, quality and access of heath
care services to the aging Population in Australia is likely to improve. However, like any other
model of payment, the user pays model has its advantages and disadvantages. Inevitably, the
procedure for resource allocation and service provision under the user pays models is changing
and likely to lead to equitable and quality aged health care services .The user pay model of care
can be considered all stakeholder inclusive.
ADVANTAGES OF THE USER PAY MODEL OF CARE
Noteworthy, under the Users pay model, the aged population get to enjoy healthcare
services under the comfort of their homes(Smith,-hamilton,2016).This user payment system is
good for the aged population because it is able to ensure constant health care to the aging
population whether the government subsidies exist or not. With the other government funded
subsidies, some aged persons were at the mercy of government funding and would lose out on
the services if the funding run out. Under the user payment model, the healthcare are services are
brought closer to the aging population. Aging persons are able to receive medical services under
familiar environment which is better for recovery for some aging patients. In addition, following
the introduction of the User pays model, there is reduced public expenditure into healthcare by
the Australian government(‘Ageing and the …N .d).Before the implementation of the user pays
model, most healthcare services for the aged was fully funded by the government. Following the
RUNNING HEAD: HEALTH CARE 2
user pays model, consumers will bear the costs for their healthcare services. Whereas this is good
news for the government, the burden of cost of health care services falls on the consumers. With
less government expenditure, the government can channel the money into the provision of other
public services. Moreover, under the user pays model, the aged populations gets to receive
services of their choosing at the comfort of their homes(Morton,2017).The Australian
government has implemented as assessment system where by the aged persons after passing the
assessment get to be allocated home care services. The fact that the aged population have a
choice in their healthcare decisions takes care of their interests. Owing to this homes based care
systems, the aged persons are likely to enjoy specialized and quality healthcare services as
compared to being hospitalized in public health care facilities. Remarkably, Australia’s health
expenditure per capita is considered among the lowest in the World (NSW Nurses & Midwives
Association, 2017).
DISADVANTAGES
Despite the convenience and other benefits of user pays model, there are various setbacks
.For some part of the aging population ,the user pays model might deny them access to
healthcare services due to their inability to finance it(Australian women’s health
network,2014).The fact that user pays model means the consumer is to finance his or her medical
healthcare, this could be ideal for part of the Australia’s population who are financially sound
and a huge burden to those that are not financially sound. Owing to the expensive nature of some
health care services such as chemotherapy, pathology among other serious illness healthcare and
supportive services might be very costly for some of Australia’s aging population. Also, the cost
of sustaining the user pays model of care for the aged population is high. Particularly, Australia
user pays model, consumers will bear the costs for their healthcare services. Whereas this is good
news for the government, the burden of cost of health care services falls on the consumers. With
less government expenditure, the government can channel the money into the provision of other
public services. Moreover, under the user pays model, the aged populations gets to receive
services of their choosing at the comfort of their homes(Morton,2017).The Australian
government has implemented as assessment system where by the aged persons after passing the
assessment get to be allocated home care services. The fact that the aged population have a
choice in their healthcare decisions takes care of their interests. Owing to this homes based care
systems, the aged persons are likely to enjoy specialized and quality healthcare services as
compared to being hospitalized in public health care facilities. Remarkably, Australia’s health
expenditure per capita is considered among the lowest in the World (NSW Nurses & Midwives
Association, 2017).
DISADVANTAGES
Despite the convenience and other benefits of user pays model, there are various setbacks
.For some part of the aging population ,the user pays model might deny them access to
healthcare services due to their inability to finance it(Australian women’s health
network,2014).The fact that user pays model means the consumer is to finance his or her medical
healthcare, this could be ideal for part of the Australia’s population who are financially sound
and a huge burden to those that are not financially sound. Owing to the expensive nature of some
health care services such as chemotherapy, pathology among other serious illness healthcare and
supportive services might be very costly for some of Australia’s aging population. Also, the cost
of sustaining the user pays model of care for the aged population is high. Particularly, Australia
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RUNNING HEAD: HEALTH CARE 3
consumer health contribution is considered 3rd highest among the world‘s wealthiest countries
according to the Conversation post of 12 th July 2016.
STAKEHOLDER INVOLVEMENT
Majorly, the Australian healthcare system is funded by the government (Duckett,
2017).Alongside public health cover, some part of the Australian population have implemented
their own private insurance on healthcare services. Also, the Australian government has a
pharmaceutical benefit scheme which subsidies the price of drugs thus the involvement of
government in the health care. In Australia, there is a wider stakeholder approach to its
healthcare system .The Australian government, private sector and consumers have a part to play
in the administration, financing and provision of health care services for the aged persons (Heti,
n. d).Funding for the residential based health care is funded by the commonwealth and other
private stakeholders. For community based care of the aged persons, funding partly comes from
the Commonwealth and the Australian states. Australia’s government provision of health care
services is offered through the Medicare program. Additional healthcare services provided for
the government of Australia include carer giver support services, payments and allowances.
In addition, the Australian government avails financial incentives in the name of pension
and other benefits that extend to health care services and support to the elderly in the comfort of
their homes. Under Medicare, the elderly in Australia have access to health care services in
public health care services, medical provision and pharmaceutical support for diseases covered
under the ambit of the Medicare health care plan. Recently, the Australian aged healthcare sector
has undergone some changes. On the funding front, the user pay model has been implemented.
Under this user pay model, the aged are required to contribute to the home care healthcare
service provision at their respective residential premises .This goes to show how the aged are
consumer health contribution is considered 3rd highest among the world‘s wealthiest countries
according to the Conversation post of 12 th July 2016.
STAKEHOLDER INVOLVEMENT
Majorly, the Australian healthcare system is funded by the government (Duckett,
2017).Alongside public health cover, some part of the Australian population have implemented
their own private insurance on healthcare services. Also, the Australian government has a
pharmaceutical benefit scheme which subsidies the price of drugs thus the involvement of
government in the health care. In Australia, there is a wider stakeholder approach to its
healthcare system .The Australian government, private sector and consumers have a part to play
in the administration, financing and provision of health care services for the aged persons (Heti,
n. d).Funding for the residential based health care is funded by the commonwealth and other
private stakeholders. For community based care of the aged persons, funding partly comes from
the Commonwealth and the Australian states. Australia’s government provision of health care
services is offered through the Medicare program. Additional healthcare services provided for
the government of Australia include carer giver support services, payments and allowances.
In addition, the Australian government avails financial incentives in the name of pension
and other benefits that extend to health care services and support to the elderly in the comfort of
their homes. Under Medicare, the elderly in Australia have access to health care services in
public health care services, medical provision and pharmaceutical support for diseases covered
under the ambit of the Medicare health care plan. Recently, the Australian aged healthcare sector
has undergone some changes. On the funding front, the user pay model has been implemented.
Under this user pay model, the aged are required to contribute to the home care healthcare
service provision at their respective residential premises .This goes to show how the aged are
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RUNNING HEAD: HEALTH CARE 4
actively involved in their health care (Egan, 2018).There is a funding collaboration between the
government of Australia, Health care providers and the consumers in Australia in an attempt to
provide better health care services to its elderly population within its borders.
QUALITY OF HEALTH CARE UNDER USER PAYS MODEL
Essentially, a public health care system is aimed at providing healthcare services to a
wider population of ailing people as opposed to providing quality health care
services(Millerand).For most public service health care providers, volume over quantity is the
norm. Prior to the introduction of the user pays model, private health care service and support
providers were compensated by the government based on the number of aged ailing patients they
had provided their services to. This way of going about health care is likely to encourage these
private and public health care providers to focus on the volume or number of aged patients as
opposed to providing the best quality health care services and support they possibly can.
However, with the user pays model, the compensation for the private and public health care
providers for the aging population is likely to improve thus likely to lead to the provision of
quality healthcare services to the ageing citizens of Australia.(Illutiera ,n. d).
This collaborative means of service provision is meant to ensure financial sustainability
of the healthcare provision for its elderly citizens but at the same time offer quality service to its
recipients. For instance, the Guild, which is a private residential union or association for health
care givers to elderly citizens is actively involved in the elderly health care provision in the
country. Quality for health care services depends on better financing for equipment, supplies and
human labor. With the proper funding which can be achieved through the user pays model,
consumers are likely to access quality health care and support services from their care
givers .Owing to the special nature of the diseases likely to be suffered by the aging population,
actively involved in their health care (Egan, 2018).There is a funding collaboration between the
government of Australia, Health care providers and the consumers in Australia in an attempt to
provide better health care services to its elderly population within its borders.
QUALITY OF HEALTH CARE UNDER USER PAYS MODEL
Essentially, a public health care system is aimed at providing healthcare services to a
wider population of ailing people as opposed to providing quality health care
services(Millerand).For most public service health care providers, volume over quantity is the
norm. Prior to the introduction of the user pays model, private health care service and support
providers were compensated by the government based on the number of aged ailing patients they
had provided their services to. This way of going about health care is likely to encourage these
private and public health care providers to focus on the volume or number of aged patients as
opposed to providing the best quality health care services and support they possibly can.
However, with the user pays model, the compensation for the private and public health care
providers for the aging population is likely to improve thus likely to lead to the provision of
quality healthcare services to the ageing citizens of Australia.(Illutiera ,n. d).
This collaborative means of service provision is meant to ensure financial sustainability
of the healthcare provision for its elderly citizens but at the same time offer quality service to its
recipients. For instance, the Guild, which is a private residential union or association for health
care givers to elderly citizens is actively involved in the elderly health care provision in the
country. Quality for health care services depends on better financing for equipment, supplies and
human labor. With the proper funding which can be achieved through the user pays model,
consumers are likely to access quality health care and support services from their care
givers .Owing to the special nature of the diseases likely to be suffered by the aging population,
RUNNING HEAD: HEALTH CARE 5
more funding might be required for the special needs of the patient which can be guaranteed
under the user pays model of care.
SERVICE AND RESOURCE ALLOCATION
Essentially, service and resource allocation for the aged under the public health care
system in Australia was under the ambit of the Australian government through its Medicare
program. Under the Medicare program, the government and the Australian states are responsible
for both the service provision and resource allocation for the ailing elderly population. Medicare
does not cover all the ailments that the elderly population within its jurisdiction might suffer
from thus the need for the affected elderly population to adopt private insurance health covers.
Primarily, health care resource allocation and service provision are guided by the patient needs
and funding allocations (Hughes & Kharvarpour, 2011).Primarily, the aged access to health care
resources is under the Australian government which makes an assessment of the elderly and
enrolls them into the residential and community based health care(Walker,2018).However, due
to the recent health care changes for the aged, the elderly are eligible for home based care after
assessment(Department of outcomes,2010).Under the user pay model, elderly patients are likely
to access equitable health care resource allocations due to their contribution to the health care
service and support.
CONCLUSION
Undoubtedly, the user pay model has its merits and demerits. Under the User pays
models, there is collective participation of the Australian government, health care service
providers and the consumers which is ideal for any health care service system in the world. The
user pays model is set to regulate and improve health care resource allocation and service
more funding might be required for the special needs of the patient which can be guaranteed
under the user pays model of care.
SERVICE AND RESOURCE ALLOCATION
Essentially, service and resource allocation for the aged under the public health care
system in Australia was under the ambit of the Australian government through its Medicare
program. Under the Medicare program, the government and the Australian states are responsible
for both the service provision and resource allocation for the ailing elderly population. Medicare
does not cover all the ailments that the elderly population within its jurisdiction might suffer
from thus the need for the affected elderly population to adopt private insurance health covers.
Primarily, health care resource allocation and service provision are guided by the patient needs
and funding allocations (Hughes & Kharvarpour, 2011).Primarily, the aged access to health care
resources is under the Australian government which makes an assessment of the elderly and
enrolls them into the residential and community based health care(Walker,2018).However, due
to the recent health care changes for the aged, the elderly are eligible for home based care after
assessment(Department of outcomes,2010).Under the user pay model, elderly patients are likely
to access equitable health care resource allocations due to their contribution to the health care
service and support.
CONCLUSION
Undoubtedly, the user pay model has its merits and demerits. Under the User pays
models, there is collective participation of the Australian government, health care service
providers and the consumers which is ideal for any health care service system in the world. The
user pays model is set to regulate and improve health care resource allocation and service
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RUNNING HEAD: HEALTH CARE 6
provision to the aging population of Australians. All in all, the user pays model of care approach
is likely to lead to better health care services for the aging population at the comfort of their
homes but at a slightly higher prices. When it comes to health and wellness, price shouldn’t be
an issue.
provision to the aging population of Australians. All in all, the user pays model of care approach
is likely to lead to better health care services for the aging population at the comfort of their
homes but at a slightly higher prices. When it comes to health and wellness, price shouldn’t be
an issue.
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RUNNING HEAD: HEALTH CARE 7
REFERENCES
‘Ageing and the Health System: Challenges, Opportunities and adaptations .Government of
Australia. Retrieved from https://www.aihw.gov.au/getmedia/19dbc591-b1ef-4485-80ce-
029ff66d6930/6_9-health-ageing.pdf.aspx
Australian Women’s Health Network. (2014).Enquiry into Out of Pockets Cost in Australian
Healthcare. Retrieved from https://www.aph.gov.au/DocumentStore.ashx?id=b5bdd1d7-
9c24-4aa2-83c4-311554b55597&subId=252577
Department of outcomes. (2010).Aged Care and Population Ageing. Government of Australia.
Retrieved from https://www.health.gov.au/internet/budget/publishing.nsf/Content/2009-
2010_Health_PBS_sup1/$File/Outcome%204%20-%20Aged%20Care%20and
%20Population%20Ageing.pdf
Duckett, S. (2017, September 21).Australia’s Health system is enviable, but there is room for
improvement. The Conversation. Retrieved from https://theconversation.com/australias-
health-system-is-enviable-but-theres-room-for-improvement-81332
Egan, N. (2018).Funding a top aged budget priority .Ageing Agenda.Com. Retrieved from
https://www.australianageingagenda.com.au/2018/01/24/funding-top-aged-care-budget-
priority
H.E.T.I. (N .d).The Australian Healthcare system .Heti. Retrieved from
http://www.heti.nsw.gov.au/international-medical-graduate/australian-healthcare-system/
REFERENCES
‘Ageing and the Health System: Challenges, Opportunities and adaptations .Government of
Australia. Retrieved from https://www.aihw.gov.au/getmedia/19dbc591-b1ef-4485-80ce-
029ff66d6930/6_9-health-ageing.pdf.aspx
Australian Women’s Health Network. (2014).Enquiry into Out of Pockets Cost in Australian
Healthcare. Retrieved from https://www.aph.gov.au/DocumentStore.ashx?id=b5bdd1d7-
9c24-4aa2-83c4-311554b55597&subId=252577
Department of outcomes. (2010).Aged Care and Population Ageing. Government of Australia.
Retrieved from https://www.health.gov.au/internet/budget/publishing.nsf/Content/2009-
2010_Health_PBS_sup1/$File/Outcome%204%20-%20Aged%20Care%20and
%20Population%20Ageing.pdf
Duckett, S. (2017, September 21).Australia’s Health system is enviable, but there is room for
improvement. The Conversation. Retrieved from https://theconversation.com/australias-
health-system-is-enviable-but-theres-room-for-improvement-81332
Egan, N. (2018).Funding a top aged budget priority .Ageing Agenda.Com. Retrieved from
https://www.australianageingagenda.com.au/2018/01/24/funding-top-aged-care-budget-
priority
H.E.T.I. (N .d).The Australian Healthcare system .Heti. Retrieved from
http://www.heti.nsw.gov.au/international-medical-graduate/australian-healthcare-system/
RUNNING HEAD: HEALTH CARE 8
Hughes, A.B & Khavarpour F.A. (2011.).Resource allocation and economic evaluation in
Australia’s Healthcare system.US National library of medicine. Retrieved from
https://www.ncbi.nlm.nih.gov/pubmed/21871187
Iturietta, A. (2006).Growing Pains: Implications of an ageing population on planning policy in
New South Wales. Retrieved from
https://www.be.unsw.edu.au/sites/default/files/upload/pdf/schools_and_engagement/
resources/_notes/5A4_3.pdf
Miller, D. H. (n .d).From volume to Value: Better ways to pay for Health Care.. Retrieved from
https://healthinsight.org/Internal/assets/Payment_Reform/pdfs/Miller-
From_Volume_to_Value-HealthAffairsSept2009.pdf
Morton, R. (2017, April 29).Concerns and Costs Around aged care rise as more live longer. The
Australian. Retrieved from https://www.theaustralian.com.au/news/inquirer/concerns-
and-costs-around-aged-care-rise-as-more-live-longer/news-story/
ab9c2d61e04281787555677a444b4741
Smith-Hamilton. (2016, May 10).Changes of aged care lets elderly pay for their services in their
homes. ABC News. Retrieved from http://www.abc.net.au/news/2016-04-16/changes-to-
aged-care-to-user-pays-system/7312008
Walker. T. (2018().Ageing, Justice, and Resource Allocation. Retrieved from
https://pure.qub.ac.uk/ws/files/26931926/Ageing.pdf
Hughes, A.B & Khavarpour F.A. (2011.).Resource allocation and economic evaluation in
Australia’s Healthcare system.US National library of medicine. Retrieved from
https://www.ncbi.nlm.nih.gov/pubmed/21871187
Iturietta, A. (2006).Growing Pains: Implications of an ageing population on planning policy in
New South Wales. Retrieved from
https://www.be.unsw.edu.au/sites/default/files/upload/pdf/schools_and_engagement/
resources/_notes/5A4_3.pdf
Miller, D. H. (n .d).From volume to Value: Better ways to pay for Health Care.. Retrieved from
https://healthinsight.org/Internal/assets/Payment_Reform/pdfs/Miller-
From_Volume_to_Value-HealthAffairsSept2009.pdf
Morton, R. (2017, April 29).Concerns and Costs Around aged care rise as more live longer. The
Australian. Retrieved from https://www.theaustralian.com.au/news/inquirer/concerns-
and-costs-around-aged-care-rise-as-more-live-longer/news-story/
ab9c2d61e04281787555677a444b4741
Smith-Hamilton. (2016, May 10).Changes of aged care lets elderly pay for their services in their
homes. ABC News. Retrieved from http://www.abc.net.au/news/2016-04-16/changes-to-
aged-care-to-user-pays-system/7312008
Walker. T. (2018().Ageing, Justice, and Resource Allocation. Retrieved from
https://pure.qub.ac.uk/ws/files/26931926/Ageing.pdf
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