Question

What creates supply and demand with respect to health policies? What motivates each in the political marketplace?

Answer 1

Supply and demand of health policies are driven by the healthcare needs of the population. The healthcare needs are often considered as health capitals for the matter of simplicity. Relatable to financial capital, if a society is said to have enough health capital, then the need for reform in health policies is less. However, if a society has poor health capital then the need for health policies to improve the health capital increases. This is what creates the demand for the health policies.

The supply of health policies are on the other hand more complex. Health policies and amendments cost money to the government, private organizations and taxpayers. As a result, the government (legislators) control the health policies that govern a jurisdiction. Having said that, if the demand for improved health policy is high, the government is forced to provide (supply) new health policies.

The supply of health policies motivate the political parties in order to gain popularity with their manifesto. We can look at the example of Barrack Obama who introduced Obamacare. On the other hand, the demand is motivator for the opposing parties. The main reason for that is to corner the party in power and ask tough questions on healthcare policies.