Question

1. How is the health care market different than other "ideal"/typical economic markets? Or to put it another way, how is paying for medical care different than buying groceries?

2. List and explain 3 reasons why health care is so expensive in the U.S.

3. If you could implement one policy today to reduce health care costs, what would it be and why?

Answer 1

1)Paying for medical care different than buying groceries because.-

• In grocery market the consumer directly pays to the suppliers but in medical care the consumers (Patients) do not pay directly to the suppliers (doctors, nurse, other health care provider).

• In grocery market the consumer is not dependent to supplier to get best things, they can choose it independently, but in medical care Patients are dependent to health care provider, to get best quality care.

• Buying groceries are not a long term process. Medical care is a long-term process (the person needs more time to become cure).

2) Health care is so expensive in U.S. because-

.DRUG PRICES- Rising Drug prices are responsible for expensive health care in U.S than other countries.

•DOCTOR'S AND NURSE'S SALARY- High salary of doctors and nurse increase health care cost in US.

• PRICES OF INPATIENT AND OUTPATIENT- inpatient and outpatient prices are increasing day by day in US due to lack of fixation on price.

3. The policy would be -

•Avoidance of unnecessary intervention of health care.

Because, avoidance of unnecessary laboratory test, buying of drugs reduce health care cost.