Question

Write at least a 350 word posting in which you discuss the public interest theory and the special interest group theory as they relate to the Patient Protection and Affordable Care Act of 2010. Be sure to include in your discussion how each describes why the government intervenes in a market-based health care system and the role politicians play in each. After reading the postings of other students, select the one that provided you with information or a view you did not consider. Write at least a 50 word response to that posting in which you identify why you selected it.

Answer 1

Public interest theory focuses on the interest of a regulatory body such as the government in the welfare of the society. The government's existence is to channelize resources in a manner that benefits every level of the society in order to improve the overall economic and living conditions of the people. This means it exists not to serve a select few.

The market-based health care system is based on the interaction of market forces. This encourages a cut-throat profit motive in the healthcare industry. This market-based situation is not in line with the public interest theory. From an angle of public interest ,the state, which has a responsibility to its people, must interfere or intervene. The role of the politicians is to ensure that proper budgetary allocations are made keeping in mind the accessibility of healthcare facilities by the society. This is because purely market-based interactions are not concerned with welfare. Hence, some amount of intervention on the government side is necessary.

The Patient Protection and Affordable Care Act of 2010 ensures that all Americans have equal and affordable access to healthcare services. The act also aims to keep the government spending below the established limit of $900 billion and aims to reduce costs and deficit of the government. The program addresses several areas such as:-

• Quality of healthcare
• Accessibility to all Americans
• Community living assistance
• Revenue provisions

Special interest group theory suggests that there are several groups with varied interest that are often at conflict with each other and aim to influence government policy. Some groups are together and others are not depending on the issue. These interactions which could be a team-like and/or conflicting nature. These interactions provide a scenario where there is some balance of interests and a it means there is a chart-map for the government to establish policies. The role of the government is that of a mediator or a referee, who tries to provide maximum utility or satisfaction to the affected parties by means of optimal allocation of resources.

Special interest groups such as the American Medical Association, American Insurance Association etc have a stake in the Patient Protection and Affordable Care Act of 2010. The government has to satisfy both the welfare needs of the people and the above mentioned interest groups. The 3 sector circular flow model of economic activity can be applied to the policy with households, Interest groups (firms), and Government comprising the players.

PS: Since you have not given me the postings of other students I cannot comment on it

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