Question

Explain the role of government interventions in the healthcare market? Identify two forms of government interventions?

Answer 1

A government intervention in the market is the one which tries to stabilise the inequalities ​that get developed in the market because of competition among private market forces and sometimes because of the market monopoly over a particular sector like health care , education etc.the government then intervenes into the market in order to bring stability among the market forces and tries to regulate the same by imposing taxes and providing subsidies to the people with low income.some governments even try to modernize the government hospitals and ensure every citizen gets good health services at affordable cost.

There are many ways/forms through which government can intervene in healthcare​ services like for example through more taxation on the rich and economically well organised , through providing subsidies to the poor and the marginal households, through putting a check to market monopoly over health care ,regulating the market forces by strict and stringent rules and code of conduct in order to ensure equal treatment to everyone, providing insurance facilities to the people, giving ex-gratia to the diseased relatives etc are some of the forms though which government can intervene in healthcare​services.