Question

Write an essay on 1 topic (1500 Word)

Topic 1: Voluntary patient enrolment in primary care From July 2020, the Australian Government will commence supporting voluntary patient enrolment (VPE) for patients aged 70 years and over. VPE aims to improve both patient and population health outcomes by encouraging continuity of care in general practice ( see: https://www1.health.gov.au/internet/main/publishing.nsf/Content/primarycare for more details). In this essay, describe the changes to the payment system that will result from the introduction of VPE. How is the VPE payment model expected to support better health outcomes? Overall, do you support the Australian government’s VPE program? Why, why not?

Topic 2: Tobacco smoking

Tobacco smoking has long been established as a serious public health concern in Australia. The Australian government and health groups have used a multi-pronged strategy to reduce smoking rates over time. Discuss the economic rationale for these strategies and their likely impact on the consumption of tobacco products and subsequent health outcomes. In your answer, include the following:

1. The operation of an excise tax on tobacco product sales, using demand and supply curves to explore its impact.
2. The role of anti-smoking education campaigns to address potential market failure

Topic 3: Private health insurance reforms

In 2019, the Australian Government introduced reforms to categorise private health insurance products. See http://www.health.gov.au/internet/main/publishing.nsf/Content/private-health-insurance-reforms-fact-sheet-gold-gilver-bronze-basic-product-categories for more details.

In your essay:

• Describe the policy change.
• Explain why you think the Australian Government introduced these reforms, making reference to relevant market failures.
• Examine the impact you think the reforms will have in the market for private health insurance.

Answer 1

Topic 2: Tobacco smoking

The consumption of tobacco is a major problem of preventable disease and illness in australia. According to recent studies there has been a long term downward trend in tobacco smoking in Australia. Moreover, the proportion of people aged 14 or older smoking daily decressed dramatically(from 24% to 12.2%) , also the amount of ex smokers aged 14 or older fluctuated from 21% in 1991, upto 26% in 2004 and has since declined to 23% in 2016.

Tobacco is the leading preventable cause of morbidity and mortgality in australia . In 2015, tobacco smoking was responsible for 9.3% of the total burden of disease attributable to tobacco use showed that cancers accounted for 43% of this burden. In addition, over this period, there was an increase in the burden of tobacco forcancer and respiratory diseases, and a large decreasein the burden for cardiovascular diseases. This is likely due to health improvements from reductions in tobacco use taking longer to become apparent in cancer and chronicf respiratory diseases than in cardiovascular diseases. Furthermore, tobacco smoking is the most common preventable risk factor for pregnancy complications., and is asscociated with poorer perinatal outcomes, including low birthweight ,being small for gestational age, pre term birth and perinatal death..

when a government imposes an excise tax on good, however it drives a wedge between the supply curve and demand curve, forcing a new equilibrium,where the amount paid by consumer is greater than the amount received by the producer.

Another advantage of increasing tax on tobacco products is that, it will lead to increased tax revenue. This will enable government to spend money on health care or on campigns to encourge people to stop smoking. Increasing tax will lead to fall in demend, although this may only be a small effect because demand is price inelastic. People are addicted and there are no close substitutes.Tobaccos are demerit good, therefore consumers may underestimate the cost of smoking, eg:- They ignore the damage to their own health, this is a reason to try and stop people smoking.

The anti-smoking educatoin helps to reduce the amount of tobacco users. The investment in televised tobacco control campaigns dramatically decrease the usage, because the larger portion of people like to watch television, as a result this method can easily captured people's attention and they can easily understand the cause of tobacco usages. As well as it helps to minimize the tobacco market in australia.