a. List two private health services and two public health services.

b. What are the reasons for government involvement in both public and private health care?

c. Why do people purchase health insurance?

Expert Solution

a)Public health care is provided by the government through national health care free of cost.Private health care system is provided by private hospitals which work for profit, non government organizations which do not work for profit.,practitioners which are faith based etc.Egs Educate people about health issues,try to solve community health issues by monitoring them.Egs of private health services are 24 hrs nurse at home,providing assistance on discharge from hospital etc.

b)Government intervention is required in order to reduce cost , as well as to increase the coverage of health insurance.This is done by correcting the failure of markets and subsidizing costs. Other reasons for government intervention may mean providing health care at affordable cost, as a right of individuals, pre existing conditions like high blood pressure and diabetes make health care costly, contagious diseases need government assistance to make treatment affordable as well as to penalize people for spreading such diseases,free riders require government help as they do not go for health insurance and declare themselves bankrupt in case of emergency for avoidance of paying bill., Government can help to solve the problem of opacity and confusion.by asking insurers to standardize their plans.

c)People purchase health insurance to cover high medical costs . Changing lifestyles make us prone to health disorders ,income tax benefits as payments made for health insurance get tax deductions,. insurance also gives coverage for pre and post hospitalization costs etc.,

Rahul Sunny answered 2 years ago

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