1) Briefly define the two competing forces in the economics of healthcare policy and reform.
2) In 2014 after the Affordable Care Act had been fully implemented, healthcare market exchanges were created to allow individuals to purchase insurance coverage through “private“ insurance carriers as opposed to a public/government option. Why in your opinion was a public/government run option not included?
3) Briefly explain why the U.S. prefers free market choices for healthcare programs.
4) Healthcare in the US is always reforming to some degree. What are two drivers of healthcare reform in the US within the past year? If you do not know, feel free to reference general news articles for ideas.
In my opinion, a public/government-run option was not included in the Affordable Care Act (ACA) due to political opposition. Many opponents of the ACA viewed a "public option" as an unnecessary government overreach that would compete unfairly with private insurers. They argued that it would lead to a government takeover of healthcare, stifle innovation, and create an unlevel playing field, ultimately pushing private insurance companies out of the market. This opposition was a significant political hurdle, and its removal was a compromise necessary to get the bill passed.
The U.S. prefers free market choices for healthcare programs due to a long-standing cultural and political belief in individual liberty and capitalism. This philosophy holds that competition among private companies drives innovation, improves quality, and lowers costs through consumer choice. Proponents of this view believe that a market-based system allows individuals to choose the plan that best fits their needs and budget, rather than being limited by a one-size-fits-all government program. This preference is deeply rooted in the American tradition of limited government intervention.
Two major drivers of healthcare reform in the U.S. within the past year have been:
Rising Costs: Healthcare spending continues to increase at a rate higher than inflation, putting pressure on families, businesses, and the government. This has led to a focus on policies aimed at reducing costs, such as promoting value-based care models over fee-for-service and increasing price transparency.
Physician and Nurse Shortages: The U.S. is facing a growing shortage of healthcare professionals, particularly in primary care and in rural areas. This has driven calls for reform to expand training programs, simplify licensing across states, and provide incentives for healthcare workers to practice in underserved areas.
Sample Answer
The two competing forces in the economics of healthcare policy are efficiency and equity. Efficiency focuses on maximizing health outcomes and services for the lowest possible cost, aiming for a system that is productive and minimizes waste. Equity, on the other hand, is concerned with fairness and ensuring that all individuals have equal access to quality healthcare, regardless of their income, social status, or other factors. These forces often conflict, as policies aimed at increasing efficiency (e.g., limiting expensive treatments) can sometimes reduce equitable access, and vice versa.The two competing forces in the economics of healthcare policy are efficiency and equity. Efficiency focuses on maximizing health outcomes and services for the lowest possible cost, aiming for a system that is productive and minimizes waste. Equity, on the other hand, is concerned with fairness and ensuring that all individuals have equal access to quality healthcare, regardless of their income, social status, or other factors. These forces often conflict, as policies aimed at increasing efficiency (e.g., limiting expensive treatments) can sometimes reduce equitable access, and vice versa.