Question

Suppose the Florida legislature is considering a measure that would provide publicly-financed health care to all new immigrants for a one-year period. If you were asked to do a cost-benefit analysis of the proposal, what sorts of costs and benefits would be important to consider? Why? Be sure to use the concepts of public goods and externalities in your answer.

Answer 1

The cost benefit analysis explains the monetary measure of cost and consequences. Cost benefit analysis in health care induce the new level of economic valuation. There are four main economic evaluations used; cost minimisation, cost effectiveness, cost utility and cost benefit. Health related cost and benefit is also related to non health factors.
In Florida there is a publically financed health care is functioned. There should be clear that how much paid for health services, gains from treatment in money terms, avoid of cost of illness. The problem arises related to the willingness of people to pay for this kind of services. The cost for health care are health service cost, other related services cost, cost incurred by patients and their family and cost by the rest of the society.
In terms of externality, public good is a positive externality. The health care services are non rivalry and non excludable in consumption. Equal distribution of health service reduces this non rivalry nature of this service. So public is responsible to pay for the health services.